Canadian Dollar Currency Update April 2, 2015 – Canadian Trade Deficit Data Strong
USD/CAD Open: 1.2601-1.2603 Overnight Range: 1.2585-1.2656
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $48.92 and gold is at $1,203. US futures are lower. Today, the US releases weekly jobless claims and trade deficit data.
The short term Canadian dollar technicals are negative. For today, USD resistance is at 1.2795. Support is at 1.2385.
US weekly jobless claims data was better than expected with 268k jobless claims, well below the 285k expected. A jobless claims number below 300k is considered strong hiring levels historically. The US trade deficit was down by 17%, largely due to cheaper oil prices, but US exports are also near a two and a half year low, which is a sign the strong US dollar is impacting the export economy.
Canadian trade deficit data was better than expected, a positive sign for loonie bulls, showing that oil price stabilization has helped the Canadian economy and that things have not gotten as bad as many had expected. This would be a positive data point for the Bank of Canada and it would make it less likely for any type of immanent interest rate cut.
Broad based US dollar weakness has been a boost for the Canadian dollar as some are starting to question if the US economy can continue to roll ahead full steam. With tomorrow’s non-farm payroll data out in the US along with it being a holiday, many are position squaring ahead of the data release. Look for the Canadian dollar to have some momentum today based on the trade deficit numbers and broad US dollar weakness.
Today’s Suggested Range USD/CAD: 1.2550 – 1.2650
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange
www.knightsbridgefx.com
By Admin | April 2, 2015 | Daily Update |
0 comments