Canadian Dollar FX Update May 11, 2016
USD/CAD Open: 1.2886-1.2887 Overnight Range: 1.2867-1.2942
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $44.69 and gold is at $1,279. 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 1.2953. Support is at 1.2841.
The Canadian dollar is strengthening modestly this morning, as the US dollar is broadly lower, and commodity prices are higher. This is a quiet week for data in Canada, making CAD likely to take direction from broader market sentiment. Moving towards the middle of the year, the Canadian dollar could face additional pressure from monetary policy considerations. Last week’s soft trade data could translate to poorer than expected economic performance in the first half of 2016, which could put pressure on the Bank of Canada. As the US continues to be on the path to policy normalization, divergent monetary policy between Canada and the US is likely to become increasingly salient in the coming months.
Today’s Suggested Range USD/CAD: 1.2850 – 1.2950
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 11, 2016 | Daily Update |
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