Canadian Dollar FX Daily Update October 5, 2015
FX Morning Update October 5, 2015
USD/CAD Open: 1.3097-1.3098 Overnight Range: 1.3064-1.3175
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $46.05 and gold is at $1,136. US futures are higher. There are no major data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3236. Support is at 1.3032.
The Canadian dollar is stronger early in the week, as the market continues to react to last week’s soft US jobs data. Commodities are also broadly higher with the exception of gold. Market pricing-based implied probabilities now predict a less than 35% chance of a rate hike in December, causing some weakness in the US dollar. However, there will be two more employment reports for the market to assess before December’s meeting, so there is still ample time for the outlook for the US labour market to improve.
Reaching the Fed’s inflation target will likely be the largest obstacle to a 2015 rate hike, as the strong US dollar figures to weigh on inflation in the short-medium term. Recent Canadian dollar rallies have been short-lived, so the chance of a rally from the US dollar at the sign of positive US economic data can be expected. Look for relative monetary policy as well as oil prices to continue to be the main drivers of the Canadian dollar.
Today’s Suggested Range USD/CAD: 1.3050 – 1.3150
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 5, 2015 | Daily Update |
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