Canadian Dollar Forex Update December 2, 2015
USD/CAD Open: 1.3397-1.3398 Overnight Range: 1.3353-1.3399
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $41.03 and gold is at $1,057. US futures are flat. Today, the Bank of Canada releases its policy decision for December.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3456. Support is at 1.3223.
The Canadian dollar is lower this morning heading into today’s Bank of Canada policy decision. The Canadian economy is saw 2.3% growth in the 3rd quarter, but a 0.5% contraction in the month of September raises some concern heading into the fourth quarter. Fourth quarter growth is largely expected to be pedestrian.
Sentiment in today’s Bank of Canada statement is likely to be more dovish than the last statement, given recent developments. It would come as little surprised to see the Canadian dollar fall further over the winter months, as markets begin to price in the possibility of further rate cuts by the Bank of Canada. A policy hold at today’s meeting is a virtual certainty, with no press conference scheduled after. However, Governor Poloz has a penchant for surprising markets. Risk appears to be to the downside for CAD. Tomorrow’s ECB meeting, as well as Friday’s dual employment release will ensure this is a busy week for the Canadian dollar.
Today’s Suggested Range USD/CAD: 1.3350 – 1.3450
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
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By Admin | December 2, 2015 | Daily Update | 0 comments