Canadian Dollar Currency Update May 22, 2015 – US Inflation Beats Expectations, Canadian Inflation Weaker
USD/CAD Open: 1.2253-1.2257 Overnight Range: 1.2172-1.2270
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $60.03 and gold is at $1,206. US futures are lower. Today, Canada releases CPI and retail sales data.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.2490. Support is at 1.1980.
The US dollar has jumped higher as US core inflation data was stronger than expected. Stronger than expected inflation can put pressure on the US Fed to raise interest rates to control inflation. In Canada, retail sales in Canada were stronger than expected at 0.7% vs. 0.3%F. Canadian inflation fell 0.1% compared to expectations of a 0.1% increase. Weak inflation in Canada allows the Bank of Canada to continue to take a wait and see approach. Overall, US dollar strength is being driven by an expected stronger economy in the second half of the year and rising inflation, while Canada seems to be a step behind.
Today’s Suggested Range USD/CAD: 1.2200 – 1.2299
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 22, 2015 | Daily Update |
0 comments