Canadian Dollar Forex Update January 20, 2016
USD/CAD Open: 1.4625-1.4626 Overnight Range: 1.4551-1.4690
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $27.90 and gold is at $1,100. US futures are lower. Today, the Bank of Canada releases its rate policy decision for January.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.4750. Support is at 1.4492.
The main focus for the Canadian dollar today will be the Bank of Canada rate policy decision. Oil is softer again this morning, making fresh cycle lows. The Canadian dollar appears vulnerable leading into today’s meeting, as lower oil prices continue to weigh on the Canadian dollar.
Analysts are split, with 16 of 34 Bloomberg analysts predicting a 25bps rate cut today. OIS is pricing in a slightly higher probability of a rate cut. It’s expected that growth figures will be revised down, as many estimates for the numbers provided in October have changed (oil was predicted to be $45/barrel in 2016 based on October’s assumptions, it is now well below $30/barrel). CAD remains vulnerable regardless of the rate policy decision. Until oil prices rebound, more short-term pain for the Loonie is likely.
Today’s Suggested Range USD/CAD: 1.4500 – 1.4750
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 20, 2016 | Daily Update |
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