Canadian Dollar FX Update May 10, 2016
USD/CAD Open: 1.2966-1.2967 Overnight Range: 1.2918-1.2980
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $43.77 and gold is at $1,264. 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 1.3026. Support is at 1.2917.
The Canadian dollar is flat, consolidating around current levels as CAD awaits further direction. In the absence of domestic data, CAD will trade based on market risk appetite, as well as commodity prices. Risk appears to be to the downside for the Canadian dollar, as yield spreads continue to widen, and uncertainty about 2016 economic performance has been raised after last week’s poor trade data. The Bank of Canada has hoped non-energy exports would be able to offset the oil price shock, but this has yet to materialize, despite the weak Canadian dollar.
Today’s Suggested Range USD/CAD: 1.2900 – 1.3000
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 | May 10, 2016 | Daily Update |
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