Canadian Dollar Currency Update May 5, 2015
USD/CAD Open: 1.2079-1.2082 Overnight Range: 1.2098-1.2181
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $60.28 and gold is at $1,192. US futures are mixed. Today, the US releases trade data and ISM non manufacturing data.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.2490. Support is at 1.1980.
Canadian trade data reported a $3 billion deficit compared to -$0.85 billion expected. Imports surged and exports gained slightly. Non-energy exports in Canada grew by 2.4%, a positive sign for the Canadian economy. As long as non-energy exports in Canada continue to grow, this bodes well for the Canadian economy, especially with oil prices starting to stabilize.
US trade deficit data released this morning showed the trade deficit rose to $51.5 billion in March. Exports in the US were up slightly but imports surged 7.7%. The impact of the trade data deficit will impact Q1 US GDP which will likely be revised lower.
The main catalyst of the Canadian dollar continues to be oil prices which are now at $60/bbl (the Bank of Canada’s forecast) and the interest rate outlook. Friday’s jobs data remains the canary in the coalmine with respect to the US economy and interest rate outlook.
Today’s Suggested Range USD/CAD: 1.2050 – 1.2150
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
www.knightsbridgefx.com
By Admin | May 5, 2015 | Daily Update |
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