Canadian Dollar FX Update July 18, 2016
USD/CAD Open: 1.2971-1.2972 Overnight Range: 1.2929-1.2977
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $45.26 and gold is at $1,329. 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 1.3005. Support is at 1.2879.
Towards the end of last week, the Canadian dollar consolidated heavily, trading within a narrow range around the 1.30 level. CAD has been trading in tandem with oil prices in the short term, showing a noticeable disconnect to yield spreads. Last week’s US data releases were largely constructive, with several surprises to the upside, indicating stronger growth prospects. We continue to note the contrast between the US economy and most other G10 countries, as the US looks towards policy tightening, most other G10 nations (Canada included) look towards neutrality, or perhaps further accommodative policy. Domestic risk is limited before Friday’s CPI and retail sales, so expect CAD to continue to look to oil in the near-term.
Today’s Suggested Range USD/CAD: 1.2950 – 1.3050
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.
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By Admin | July 18, 2016 | Daily Update |
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