Canadian Dollar Morning Update December 15, 2015
USD/CAD Open: 1.3714-1.3715 Overnight Range: 1.3673-1.3732
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $36.22 and gold is at $1,064. US futures are higher. There are no major domestic data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3763. Support is at 1.3655.
The Canadian dollar is quietly consolidating before tomorrow’s important FOMC policy rate decision. A 25bp rate hike is almost fully priced in at this point. The tone of the statement will be essential, as markets look to gain additional insight towards the normalization path. US CPI data this morning was in line with expectations, which is seen as a positive moving into tomorrow’s decision.
Oil remains low, but is a little better than yesterday. The yield spreads for the Canada/US 2Y continue to widen, further highlighting the divergent monetary policy between Canada and the US. Markets are now pricing in a 40% chance of a 25bp rate cut for Canada over the next 12 months. This could be a volatile week for FX following tomorrow’s FOMC meeting.
Today’s Suggested Range USD/CAD: 1.3650 – 1.3750
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 | December 15, 2015 | Daily Update |
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