Canadian Dollar FX Morning Update December 12, 2014 – Canadian Dollar down to 5.5 year low

USD/CAD Open: 1.1544-1.1546 Overnight Range: 1.1522-1.1592

The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $58.57 and gold is at $1,221. US futures are lower. Today, there are no major data releases.

The short term Canadian dollar technicals are negative. For today, USD resistance is at 1.1565. Support is at 1.1329.

US futures are lower as falling oil prices could eventually cause deflationary pressures. However, for the most part, US economic data seems largely positive. Oil is now decisively below $60/bbl and is down about 40% on the year. This could have a trickle down effect on Canada’s economy and also high yield debt that has been loaned to resource companies. Risk aversion is the theme of the day. The loonie is now down to near a 5.5 year low.

Today’s Suggested Range USD/CAD: 1.1500 – 1.1600

Sincerely,

Rahim Madhavji | Knightsbridge Foreign Exchange
T: 416-274-9332 | T: 1-877-355-KBFX (5239) ext. 101 | Trading Floor: 416-479-0834 |
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www.knightsbridgefx.com

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By Admin | December 12, 2014 | Daily Update | 0 comments
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