Canadian Dollar Morning FX Update January 15, 2016
USD/CAD Open: 1.4484-1.4485 Overnight Range: 1.4342-1.4547
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $29.55 and gold is at $1,093. US futures are lower premarket. There are no major domestic data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.4593. Support is at 1.4381.
The Canadian dollar is sharply lower this morning, as oil opens below $30/barrel, its lowest point since 2003. Global equities are broadly lower this morning. As a result of the impending embargo restriction lifting on Iranian oil, heightened concerns surrounding production levels have pushed oil prices lower. US retail sales ended 2015 with a whimper, falling 0.1% in December.
The shock to the Canadian dollar will likely put the Bank of Canada on the defensive, as they attempt to stabilize markets. The BoC does have the ability to intervene in FX markets to stabilize the Canadian dollar, under “exceptional circumstances”, but has not done so since 1998. Clear skies do not appear to be on the horizon for the Loonie.
Today’s Suggested Range USD/CAD: 1.4450 – 1.4550
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 | January 15, 2016 | Daily Update |
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