Canadian Dollar Currency Exchange Update May 28, 2015
USD/CAD Open: 1.2474-1.2476 Overnight Range: 1.2438-1.2503
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $57.45 and gold is at $1,186. US futures are lower. Today, the EIA releases oil inventories.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.2522. Support is at 1.2424.
The Canadian dollar continued to soften after the Bank of Canada’s policy rate decision yesterday. Governor Poloz reiterated his neutral tone, leaving rates unchanged as widely expected. The EIA releases oil inventories today, where a fourth consecutive week in inventory declines is estimated. Poor data resulting in a softening of oil prices presents short-term risk to the Canadian dollar. However, there have been no major changes to oil prices over the last month, so the story has (and will continue to be) the sentiments of the BoC and the Fed, as well as impending data releases. It continues to be a US dollar story and the US dollar has a lot of momentum as sentiment is building that a interest rate hike in September/December is very likely. The Canadian dollar doesn’t have a strong catalyst at the moment. Tomorrow, Q1 GDP data is set to be released.
Today’s Suggested Range USD/CAD: 1.2450 – 1.2550
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
www.knightsbridgefx.com
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By Admin | May 28, 2015 | Daily Update |
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