Canadian Dollar Currency Exchange Update May 27, 2015 – All about the Bank of Canada
USD/CAD Open: 1.2472-1.2474 Overnight Range: 1.2395-1.2476
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $57.90 and gold is at $1,186. US futures are higher. Today, the Bank of Canada releases its latest policy rate-decision.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.2506. Support is at 1.2347.
The USD continues to rise of on the strength of recent data releases for new housing starts, CPI, and durable goods. Furthermore, Fed Chair Yellen’s comments on a US interest rate hike this year has also supported the US dollar. As the growth outlook for the American economy continues to stabilize, the Fed looks to be progressing towards the path to policy normalization. All eyes today are on the Bank of Canada. Governor Poloz will speak today on the latest rate policy. A neutral tone is widely expecting, with the Bank of Canada leaving rates unchanged. The Bank of Canada will be closely following oil prices, as well as relative economic strength when making rate decisions and their outlook. Any negative tone by the Bank of Canada could hurt the Canadian dollar as a more neutral tone was provided previously. The Canadian dollar continues to be driven by a US dollar story.
Today’s Suggested Range USD/CAD: 1.2425 – 1.2550
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
www.knightsbridgefx.com
Knightsbridge Foreign Exchange has based the opinions expressed herein on information generally available to the public. Knightsbridge Foreign Exchange makes no warranty concerning the accuracy of this information and specifically disclaims any liability for trading decisions based on the opinions expressed and information contained herein. Such information and opinions are for general information only and are not intended to present advice with respect to matters reviewed and commented upon.
By Admin | May 27, 2015 | Daily Update |
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