Canadian Dollar FX Morning Update January 30, 2015 (GDP data negative)
USD/CAD Open: 1.2655-1.2660 Overnight Range: 1.2607-1.2690
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $44.83 and gold is at $1,264. US futures are negative. Today, the US and Canada release GDP.
The short term Canadian dollar technicals are negative. For today, USD resistance is at 1.2800. Support is at 1.2611.
It’s the same story for the Canadian dollar, it continues to be under pressure. The Canadian dollar has been freefalling of late and the US dollar has broad based strength. US GDP continued to grow but at a lower rate than expected. The highlight of the US GDP report was consumer spending. Canadian GDP data was negative and was also worse than expected and this has impacted the pretty hard Canadian dollar. With oil prices low and economic data now negative, the Canadian dollar has negative momentum. With the volatile swings we have seen, many question if the Bank of Canada has any role in price stability of the Canadian dollar.
Today’s Suggested Range USD/CAD: 1.2700 – 1.2850
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange
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By Admin | January 30, 2015 | Daily Update |
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