Canadian Dollar Currency Exchange Update September 9, 2015
FX Morning Update September 9, 2015
USD/CAD Open: 1.3247-1.3248 Overnight Range: 1.3177-1.3262
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $45.50 and gold is at $1,117. US futures are higher. Today, the Bank of Canada will announce its September rate decision.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3305. Support is at 1.3174.
The Canadian dollar is soft heading into today’s Bank of Canada rate policy decision. A hold is widely expected, but a further rate cut cannot be ruled out, as Governor Poloz has a history of surprises. The risk lies in the sentiment of the accompanying statement, with particular scrutiny in respect to trade data, as well as underlying inflation. Given export data for June and July, it appears the highly anticipated non-energy led export growth path to normalization may be beginning to come to fruition. It would be unsurprising to see dovish concerns surrounding global economic growth and persistently low oil prices. Look to the Canadian dollar to soften very modestly if the decision is a rate hold with dovish sentiment, as that is expected. A further rate cut would surely push the Canadian dollar lower. Any elimination of a rate cut possibility could help the loonie rally.
Today’s Suggested Range USD/CAD: 1.3200 – 1.3300
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
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By Admin | September 9, 2015 | Daily Update | 0 comments