Canadian Dollar FX Update December 30, 2015
USD/CAD Open: 1.3906-1.3907 Overnight Range: 1.3829-1.3913
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $36.90 and gold is at $1,065. US futures are lower. There are no major data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3935. Support is at 1.3811.
The Canadian dollar continues to consolidate around its 2 week average, amidst lighter holiday trading. The Canadian dollar has most closely tracked oil prices over the last few weeks. With WTI slightly lower, risk exists in EIA oil inventory data to be released this morning. A greater buildup of inventory will only serve to weigh on WTI, and resultantly, the Canadian dollar. OIS continues to price in an approximately 40% chance of a 25bp rate cut in Canada sometime over the next twelve months. In the medium term, the US pace of monetary policy normalization will affect CAD more heavily, in tandem with oil prices.
Today’s Suggested Range USD/CAD: 1.3850 – 1.3950
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
www.knightsbridgefx.com
Knightsbridge Foreign Exchange has based the opinions expressed herein on information generally available to the public. Knightsbridge Foreign Exchange makes no warranty concerning the accuracy of this information and specifically disclaims any liability for trading decisions based on the opinions expressed and information contained herein. Such information and opinions are for general information only and are not intended to present advice with respect to matters reviewed and commented upon.
By Admin | December 30, 2015 | Daily Update |
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