Canadian Dollar February 28, 2014
USD/CAD Open: 1.1134-1.1136 Overnight Range: 1.1076-1.1155
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $102.05 and gold is at $1,331. US futures are lower. Today, the Canada releases GDP data.
The short term Canadian dollar technicals are bearish. For today, USD resistance is at 1.1180 and 1.1260. Support is at 1.0890 and 1.0610.
Canadian GDP data released this morning was better than expected and provided a boost to the Canadian dollar. This is the best year of growth since 2011. Canadian Q4 GDP data, despite a 0.5% contraction in December, was at 2.9% vs. expectations of 2.6%. Weather conditions could have impacted December GDP. While the positive GDP numbers likely won’t get the Bank of Canada to raise interest rates anytime soon, it does start building a case for it if the data keeps surprising to the upside.
Today’s Suggested Range USD/CAD: 1.1050 – 1.1150
Rahim Madhavji | Knightsbridge Foreign Exchange
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By Admin | February 28, 2014 | Daily Update |
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