Canadian Dollar FX Update January 7, 2016
USD/CAD Open: 1.4116-1.4117 Overnight Range: 1.4064-1.4170
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $32.71 and gold is at $1,103. 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 1.4223. Support is at 1.4027.
Commodity currencies, the Canadian dollar among them, are lower again this morning. Oil prices have fallen to the lowest levels since 2008, as oil continues to fall closer to $30/barrel. We saw another sharp decline in Chinese equities today, which is weighing on broader equities early in the day. Most major stock indexes are lower the morning, pushing the FX space into risk aversion, with the JPY the best performer on the day thus far. Last year, persistent underperformance in Chinese equities sparked concerns around global growth figures, which we could see arise again in 2016. Low oil prices and a the struggling domestic economy will be the Bank of Canada’s primary focus at January’s meeting.
Today’s Suggested Range USD/CAD: 1.4050 – 1.4150
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
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By Admin | January 7, 2016 | Daily Update | 0 comments