Canadian Dollar Currency Update September 3, 2015
USD/CAD Open: 1.3283-1.3284 Overnight Range: 1.3248-1.3290
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $46.25 and gold is at $1,122. US futures are higher. Today, Canada released merchandise trade balance data.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3325. Support is at 1.3200.
The USD/CAD has begun to consolidate around the 1.3200 level during the middle of this week. CAD has not made fresh lows since the 25th of August. The Canadian merchandise trade balance for July was -0.59B, beating expectations of -1.20B. June figures were also revised down. Low energy exports have been weighing on Canada’s trade deficit in 2015, with the Bank of Canada hoping for non-energy led export growth to be the catalyst on the path to policy normalization in Canada.
Leading up to the September 9th BoC meeting, oil prices will remain the focus. The September 17th FOMC meeting will be the other key event taking place in September that could move markets significantly. With the Fed looking increasingly circumspect, the timeline for the first rate hike in the US remains ambiguous. What we do know is the Fed plans on raising rates gradually. Leading up to these central bank meetings, look for relative monetary policy to become a more important factor in USD/CAD movement. Oil and monetary policy run the show for the Canadian dollar.
Today’s Suggested Range USD/CAD: 1.3200 – 1.3300
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 | September 3, 2015 | Daily Update |
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