Canadian Dollar FX Update, October 11
USD/CAD Open: 1.3191-1.3192 Overnight Range: 1.3162-1.3239
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $51.21 and gold is at $1,257. 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 1.3294. Support is at 1.3142.
The US dollar remains generally well supported against its G-10 counterparts, including CAD. CAD has risen slightly above last week’s lows, but has struggled to gain momentum despite more positive domestic data showings. Aptly summarized by Governor Poloz over the weekend, “we’re creating jobs, growth is low, but it’s not zero”. A wait-and-see approach from the Bank of Canada in the short-term is the likely scenario.
Oil prices continue to climb higher, but have failed to provide meaningful support to the Canadian dollar as other factors have played a more dominant role in FX markets of late. Effective supply management implementation from OPEC could help WTI climb higher in the medium term. Monetary policy (including the US Fed rate-hike narrative) will continue to be the most dominant factor in FX markets. Yield spreads reflect this, as they have been widening in a CAD-negative manner. CAD remains without a catalyst in the short-term.
Today’s Suggested Range USD/CAD: 1.3150 – 1.3250
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.
Click Here to Subscribe
By Admin | October 11, 2016 | Daily Update |
0 comments