Canadian Dollar FX Morning Update January 23, 2015 (Strong Retail Sales in Canada)
USD/CAD Open: 1.2410-1.2411 Overnight Range: 1.2356-1.2467
The Canadian dollar was volatile in overnight currency exchange markets. Oil is at $46.40 and gold is at $1,297. US futures are higher. Today, Canada releases CPI and retail sales data.
The short term Canadian dollar technicals are negative. For today, USD resistance is at 1.2491. Support is at 1.2101.
Quantitative easing from the ECB has the euro tumbling. The US dollar is stronger on broad based strength. The Canadian dollar continues to be weak, driven by the recent Bank of Canada interest rate cut and weak oil prices. The lower Canadian dollar and low interest rates should provide a boost to Canada’s economy in the longer term, which should help the loonie, but in the near term, the momentum of the US dollar is strong. Canadian retail sales data was stronger than expected and this should provide a small boost to the Canadian dollar.
Today’s Suggested Range USD/CAD: 1.2350 – 1.2450
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange
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By Admin | January 23, 2015 | Daily Update |
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