Canadian Dollar FX Update May 6, 2016
USD/CAD Open: 1.2923-1.2924 Overnight Range: 1.2831-1.2952
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $43.62 and gold is at $1,291. US futures are lower. Today, both Canada and the US release employment data for April.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.2923. Support is at 1.2809.
The Canadian dollar is lower again this morning, as we begin to see signs of a reversal in the bull run CAD had experienced over the last three months. Both Canada and the US missed expectations for employment data: Canada -2.1k vs. +1k expected, US +160k vs. +200k expected. The US labour market appears to be cooling off, but still appears to be around full employment, as the unemployment rate is 5%. The same cannot be said for Canada, as Canadian unemployment remains high, at 7.1%. WTI is lower again today, contributing to CAD’s slump, moving towards the weekend.
Today’s Suggested Range USD/CAD: 1.2900 – 1.3000
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
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By Admin | May 6, 2016 | Daily Update | 0 comments