Canadian Dollar FX Update October 2, 2015
FX Morning Update October 2, 2015
USD/CAD Open: 1.3189-1.3191 Overnight Range: 1.3184-1.3271
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $44.89 and gold is at $1,119. 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 1.3308. Support is at 1.3195.
The Canadian dollar has appreciated modestly this morning on the heels of weaker than expected US employment data. US non-farm payrolls were expected to reach 203,000, and instead surprised to the downside, with only 142,000 new jobs being created. Additionally, non-farm payrolls for July and August were both revised downwards by a combined 59,000. The unemployment rate remained unchanged at 5.1%, due to lower labour force participation.
It’s indeterminate whether these weak labour force figures will delay the timeline of a rate hike from the Fed. The Fed had been hoping to see the low unemployment rate put upward pressure on hourly wages, but there have been limited signs that this is the case. Markets will be trying to assess how this most recent labour report affects the likelihood of a rate hike in 2015. Over the past few weeks, the Canadian dollar has shown an inability to sustain a rally, losing momentum quickly; making a retracement of this morning’s gains a possibility. The main driver for the Canadian dollar for today will be relative monetary policy as the market continues to digest the US labour data.
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
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By Admin | October 2, 2015 | Daily Update |
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