Canadian Dollar FX Update October 28, 2015
FX Morning Update October 28, 2015
USD/CAD Open: 1.3217-1.3218 Overnight Range: 1.3216-1.3280
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $43.53 and gold is at $1,174. US futures are flat. There are no major domestic data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3289. Support is at 1.3162.
The Canadian dollar is trading at levels similar to yesterday in anticipation of today’s FOMC rate decision. A rate hold is widely expected today, as there is no press conference scheduled after the meeting. As many Fed speakers have expressed a desire to raise rates before the end of 2015, markets may be underselling the possibility of a rate hike this meeting. Since a hold is being largely priced in, there is downside risk to the Canadian dollar with a hold decision, as hawkish Fed speak will contrast with the dovish-neutral tone of the Bank of Canada.
As divergent monetary policy becomes increasingly salient, we can expect Canadian dollar weakness. Oil prices figure to provide little support to the Canadian dollar in the short-term. Over the remainder of 2015, this will continue to be a US dollar story.
Today’s Suggested Range USD/CAD: 1.3200 – 1.3300
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.
By Admin | October 28, 2015 | Daily Update |
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