Canadian Dollar FX Update May 18, 2016
USD/CAD Open: 1.2976-1.2977 Overnight Range: 1.2896-1.2994
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $48.35 and gold is at $1,271. 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 1.2916. Support is at 1.2764.
The Canadian dollar is soft this morning, in an environment of broad-based US dollar strength leading up to today’s Fed minutes release. Oil prices are approaching $50/barrel, but appear to have lost their influence over CAD in the short-term. Relative policy appears poised to be the primary driver over the middle of the year, as markets begin to anticipate the rate hike timeline for the US. Conversely, expectations for the Bank of Canada appear to be deteriorating as a result of weak Canadian trade data. Divergent monetary policy is likely to be increasingly salient as the year progresses.
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 | May 18, 2016 | Daily Update |
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