Canadian Dollar Foreign Exchange Update October 20, 2016
USD/CAD Open: 1.3183-1.3184 Overnight Range: 1.3110-1.3213
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $50.58 and gold is at $1,272. US futures are higher. There are no major domestic data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3221. Support is at 1.3050.
The Canadian dollar is lower this morning, after yesterday’s short-lived Bank of Canada driven rally. Yesterday’s statement tone was more neutral than expected, sparking a knee-jerk increase for CAD. However, during yesterday’s press conference Governor Poloz discussed the possibility of adding more monetary policy stimulus, which is CAD-negative. Overall, CAD retraced the early gains as Governor Poloz’s press conference added further colour to the statement, with market participants re-pricing a greater risk of additional easing. Monetary policy will remain dominant throughout the end of 2016, and moving into early 2017.
Today’s Suggested Range USD/CAD: 1.3150 – 1.3250
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.
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By Admin | October 20, 2016 | Daily Update |
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