Canadian Dollar Forex Update October 23, 2015
FX Morning Update October 23, 2015
USD/CAD Open: 1.3121-1.3122 Overnight Range: 1.3039-1.3131
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $45.28 and gold is at $1,178. US futures are higher. Today Canada releases CPI data for the month of September.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3140. Support is at 1.3021.
The Canadian dollar is down slightly this morning, as CPI grew at a disappointing rate for the month of September, 1% YOY against expectations of 1.1%. Canada’s economy is still feeling the effects of lower oil prices, and the path of non-energy led export growth appears to be taking longer to materialize than originally prognosticated.
In the long-run, the Canadian dollar will continue to be hamstrung by divergent central bank policy. While the Bank of Canada has remained dovish, especially in regards to economic growth forecasts, Fed officials continue to emphasize that a rate hike before the year’s end is possible. Next week’s FOMC meeting should provide additional clarity to the Fed’s rate-hike timeline. In the short-term, the Canadian dollar will be driven by the broader tone as well as oil prices.
Today’s Suggested Range USD/CAD: 1.3100 – 1.3200
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
www.knightsbridgefx.com
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By Admin | October 23, 2015 | Daily Update |
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