Canadian Dollar FX Update January 25, 2016
USD/CAD Open: 1.4207-1.4208 Overnight Range: 1.4126-1.4220
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $30.99 and gold is at $1,104. 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 1.4284. Support is at 1.4098.
The Canadian dollar is underperforming slightly from last week’s rally, as oil and metal prices have fallen off their recent 2 week high. WTI appears to have found support above $30/barrel. The end of the week will be more eventful, as January’s FOMC meeting is scheduled for Wednesday. An additional rate hike at March’s meeting is being largely discounted, with markets placing only about a 20% probability. Wednesday’s meeting should provide further commentary on the US economic state, and resultantly, the Fed’s rate hike timeline.
Canada releases monthly GDP figures for November, which will provide additional insight as to the Canadian economic outlook. For now, the Canadian dollar appears to be treading water. For the rally in CAD to continue, we’ll need to see some positive news pertaining to the Canadian economy or oil prices this week.
Today’s Suggested Range USD/CAD: 1.4150 – 1.4250
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 25, 2016 | Daily Update |
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