Canadian Dollar Morning Update December 17, 2015
USD/CAD Open: 1.3839-1.3840 Overnight Range: 1.3778-1.3845
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $35.40 and gold is at $1,061. US futures are higher. There are no domestic data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3877. Support is at 1.3757.
The Canadian dollar is slightly lower in the wake of yesterday’s FOMC rate decision. The US decided to raise rates for the first time since 2006, which has led to broad-based USD strength this morning, as markets continue to digest the data. The rate hike was more hawkish than expected, with the Fed expecting to add a full percent of tightening by the end of 2016. Considering the BoC will be forced to consider additional easing over the coming months due to low oil prices, we can expect relative monetary policy to continue to hamstring the Canadian dollar, as evidenced by increasing 2Y yield spreads.
The Canadian dollar is at its lowest point since May of 2004, with the potential to fall lower if economic policy remains significantly divergent throughout 2016.
Today’s Suggested Range USD/CAD: 1.3800 – 1.3900
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 17, 2015 | Daily Update |
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