Canadian Dollar Forex Update October 6, 2015
FX Morning Update October 6, 2015
USD/CAD Open: 1.3121-1.3122 Overnight Range: 1.3064-1.3134
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $46.34 and gold is at $1,138. US futures are lower. Today, Canada released merchandise trade data.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3165. Support is at 1.3053.
The Canadian dollar is soft this morning as merchandise trade data for August proved to be much weaker than expected, including a 3.6% drop in exports. The deficit expanded to $2.53-billion from July, against expectations of a deficit of $1.17-billion. July’s figures were also revised to show a larger deficit than previously reported. The weak trade data calls into question whether the Canadian economy is recovering from low oil prices.
The Bank of Canada has expected to see non-energy exports lead the economic recovery in Canada, but thus far this has failed to materialize. The effects of the low Canadian dollar could take several months to be fully recognized in the export market, so it is reasonable that we could see a bounce back in exports later in the year. Export figures will be an important input to assess the health of the Canadian economy. In the short-term, September’s labour market figures will have the potential to move the Canadian dollar, along with 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
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 | October 6, 2015 | Daily Update |
0 comments