Canadian Dollar Foreign Exchange Outlook August 17, 2015
USD/CAD Open: 1.3105-1.3106 Overnight Range: 1.3089-1.3152
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $41.76 and gold is at $1,119. US futures are lower. There are no major data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3196. Support is at 1.3061.
The Canadian dollar remains trading within the narrow range that has been characteristic of the past month. Oil remains soft, around $42/barrel. In the absence of major data releases today, the Canadian dollar will continue to trade based on oil prices as well as relative monetary policy outlook. Speculation surrounding the upcoming September FOMC meeting will continue, with US domestic data being closely analyzed due to the Fed’s data dependent approach to normalization.
The devaluation of the Chinese Yuan has created some uncertainty with respect to China’s economic outlook, which does not bode well for the Canadian dollar. A larger than expected slowdown in China could cause some ripple effects to the Canadian dollar outlook and commodities. The focus remains on the US FED policy outlook but China is something to keep a close eye on as well.
Today’s Suggested Range USD/CAD: 1.3050 – 1.3150
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 | August 17, 2015 | Daily Update |
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