Canadian Dollar FX Update March 2, 2017
USD/CAD Open: 1.3381-1.3382 Overnight Range: 1.3322-1.3385
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $53.06 and gold is at $1,240. US futures are mixed. Canada releases 4th quarter GDP figures today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3311. Support is at 1.3404.
Following yesterday’s Bank of Canada meeting, the Canadian dollar is approaching 2017 lows this morning. The Bank of Canada statement highlighted persistent labour market slack and challenges for Canadian export, as well as the apparent policy divergence between Canada and the U.S. Fed fund futures are currently pricing an 88% chance of a March rate hike. Canadian GDP for Q4 surprised to the upside (+2.0% annualized expected vs. +2.6% actual), which has failed to have a material impact on CAD. Oil prices are also lower, contributing to CAD weakness. We expect monetary policy to continue to be CAD’s primary driver leading up to the March Fed meeting.
Today’s Suggested Range USD/CAD: 1.3350 – 1.3450
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.
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By Admin | March 2, 2017 | Daily Update | 0 comments