Canadian Dollar FX Morning Update July 18, 2014 – Inflation and CPI data
USD/CAD Open: 1.0745-1.0747 Overnight Range: 1.0744-1.0766
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $103.02 and gold is at $1,309. US futures are higher. Today, US consumer sentiment and leading indicators data are released and Canada releases inflation data.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.0850 and 1.0990. Support is at 1.0620 and 1.0510.
Geopolitical tensions between Russia and Ukraine seem to have risen after the plane crash yesterday – the UN is holding an emergency meeting to discuss the crisis. Despite the selloff in equities yesterday, the Canadian dollar remains resilient. Canadian CPI data released this morning indicated inflation was stronger than expected. This should boost the Canadian dollar. However, the Bank of Canada indicated clearly that recent inflation strength could be transitory, which could limit the Canadian dollar’s upside in the near term. While Canadian dollar bulls are pointing to strengthening inflation, Canadian dollar bears are pointing to the Bank of Canada’s view on inflation.
Today’s Suggested Range USD/CAD: 1.0700 – 1.0800
Rahim Madhavji | Knightsbridge Foreign Exchange
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By Admin | July 18, 2014 | Daily Update | 0 comments