Canadian Dollar FX Morning Update September 28, 2015
FX Morning Update September 28, 2015
USD/CAD Open: 1.3358-1.3359 Overnight Range: 1.3317-1.3379
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $44.83 and gold is at $1,129. US futures are lower. There are no major domestic data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3401. Support is at 1.3324.
The Canadian dollar remains soft early in the week, trading at levels nearing the recently established 11 year low against the US dollar. This week will be a light week for domestic data in Canada, so broader developments in the US will be the main driver. The US released PCE data this morning, with personal consumption growing at 0.4% against expectations of 0.3%. Strong consumer spending data suggests that the 2nd quarter’s robust growth rate (3.9% annualized), could carry into the 3rd quarter in the United States.
There are a number of Fed officials speaking this week, including Dudley, Evans, and Williams. These speakers should provide additional colour to Fed Chair Yellen’s comments last week. Hawkish Fed sentiment will buoy the US dollar. Relative monetary policy and oil prices will continue to be the main drivers for the Canadian dollar in the absence of domestic data releases.
Today’s Suggested Range USD/CAD: 1.3300 – 1.3400
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
www.knightsbridgefx.com
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By Admin | September 28, 2015 | Daily Update |
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