Canadian Dollar Forex Update May 4, 2016
USD/CAD Open: 1.2800-1.2801 Overnight Range: 1.2696-1.2817
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $44.34 and gold is at $1,288. US futures are lower. Canada releases merchandise trade data for March today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.2868. Support is at 1.2708.
The Canadian dollar is lower this morning, as March trade data showed Canada’s widest monthly trade deficit ever. The trade balance missed expectations widely, as it was -3.4B against expectations of -1.2B. The low Canadian dollar has thusfar been unable to offset the decline in energy exports for the Canadian economy. The Bank of Canada was hoping for non-energy exports to be a leading factor in the normalization of the Canadian economy, but this has not yet materialized. Monetary policy will become an increasingly important factor moving towards the middle of the year.
Today’s Suggested Range USD/CAD: 1.2750 – 1.2850
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
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 | May 4, 2016 | Daily Update | 0 comments