Canadian Dollar Currency Update January 27, 2016
USD/CAD Open: 1.4115-1.4116 Overnight Range: 1.4041-1.4157
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $30.74 and gold is at $1,119. US futures are lower. Today, the FOMC releases January’s rate decision.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.4246. Support is at 1.3965.
The Canadian dollar continues to rally ahead of today’s Fed meeting, outperforming alongside AUD and MXN. The focal point of the day will be the Fed’s meeting, with only a statement, and no press conference, scheduled. Many are expecting a dovish turn from the Fed, similar to what we witnessed in September as a response to European market turmoil.
Low oil prices are weighing on US inflation, amidst global economic growth concerns, which many think will push the Fed away from its projected 4 rate hikes in 2016. Markets are currently not pricing in an additional rate hike before September, and are only pricing in one hike for 2016. Today’s statement will provide a clearer outlook as to whether a March rate hike remains a possibility, which is now priced in as a 20% probability. Today’s Fed meeting will be important in determining 2016’s flight trajectory for the Loonie.
Today’s Suggested Range USD/CAD: 1.4050 – 1.4150
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 | January 27, 2016 | Daily Update |
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