Canadian Dollar FX Update February 26, 2016
USD/CAD Open: 1.3523-1.3524 Overnight Range: 1.3504-1.3564
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $33.97 and gold is at $1,231. US futures are higher. There are no major domestic data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3696. Support is at 1.3466.
The Canadian dollar has performed strongly in the second half of the week, consolidating a 2% gain over the last two sessions. Underpinning the recent Canadian dollar rally is firmer oil prices, narrower yield spreads, as well as risk appetite as evidenced by higher equities. Risk appetite will continue to be a benefactor for CAD, alongside other commodity currencies. Data risk today lies with the release of personal consumption spending in the US. Personal consumption is a key metric for the Fed moving forward, as it will help to clarify the inflation picture. With the labour market performing well in the US, inflation will be the primary focus of the Fed throughout 2016.
Today’s Suggested Range USD/CAD: 1.3500 – 1.3600
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
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 | February 26, 2016 | Daily Update | 0 comments