Canadian Dollar Forex Update January 13, 2016
USD/CAD Open: 1.4218-1.4219 Overnight Range: 1.4187-1.4277
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $31.50 and gold is at $1,082. 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 1.4302. Support is at 1.4164.
The Canadian dollar is stronger this morning, as FX markets show increased risk appetite as a result of better than expected Chinese trade data. Commodity currencies such as AUD, CAD, MXN, and NOK are all outperforming. Oil prices have stabilized after testing $30/barrel yesterday, but further weakness in the near-term can be expected.
CAD’s biggest near-term risk lies in the path for oil, as the Bank of Canada has shown a willingness to react to low oil prices in the past to stimulate the domestic economy. 7 of 25 analysts surveyed by Bloomberg are now expecting a rate cut at this upcoming January meeting. The Loonie could be flying into headwinds over the coming weeks.
Today’s Suggested Range USD/CAD: 1.4150 – 1.4250
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 | January 13, 2016 | Daily Update |
0 comments