Canadian Dollar FX Update October 8, 2015
FX Morning Update October 8, 2015
USD/CAD Open: 1.3067-1.3068 Overnight Range: 1.3022-1.3074
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $48.14 and gold is at $1,138. 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 1.3074. Support is at 1.2974.
Yesterday, the US dollar began to pare away some of the recent Canadian dollar gains, as FX markets have taken some risk off the table amidst concerns over global economic growth. German exports were down in August, and factoring in the recent VW emissions scandal, they are likely to face an uphill battle throughout the end of 2015. The Canadian dollar has been quiet, with the most likely catalyst on the day being the minutes release from the September FOMC meeting.
FOMC minutes are likely to be mixed in sentiment, as it’s well known that despite electing to hold rates in September, the decision was close. Overly hawkish data would further buoy the US dollar in the short-term. Continued divergent monetary policy between the Fed and Bank of Canada will limit the upside of the Canadian dollar in the medium-term.
Today’s Suggested Range USD/CAD: 1.3000 – 1.3100
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
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By Admin | October 9, 2015 | Daily Update | 0 comments