Canadian Dollar FX Update September 12, 2016
USD/CAD Open: 1.3101-1.3102 Overnight Range: 1.3022-1.3124
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $45.11 and gold is at $1,328. 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 1.3182. Support is at 1.2969.
CAD is soft; underperforming all of the G10 currencies alongside AUD. Risk aversion is dominant in FX markets, as currencies react according to their risk profiles. CAD’s main drivers are unsupportive, as commodities are broadly lower, and yield spreads continue to widen in a CAD-negative manner. Contrasting monetary policy between Canada and the US will continue to be the main storyline for the Canadian dollar. The Bank of Canada’s tone last week was more dovish than expected, further contrasting with an increasingly hawkish Fed looking to raise rates before year’s end.
Today’s Suggested Range USD/CAD: 1.3050 – 1.3150
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.
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By Admin | September 12, 2016 | Daily Update |
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