Canadian Dollar Morning Update January 28, 2015
USD/CAD Open: 1.2423-1.2424 Overnight Range: 1.2375-1.2456
The Canadian dollar was volatile in overnight currency exchange markets. Oil is at $45.53 and gold is at $1,291. US futures are positive. Today, the FOMC provides an update.
The short term Canadian dollar technicals are negative. For today, USD resistance is at 1.2491. Support is at 1.2101.
All eyes are on the FOMC today as the US FED will discuss the interest rate outlook. No changes in interest rates are expected today, but the outlook is important. With oil prices falling, this would likely be a net benefit to the US economy, which would encourage the FED to remain on course to raise interest rates midyear. However, lower US inflation could be expected as well, which reduces the pressure for the FED to raise rates and take a more cautious tone due to the uncertain global growth outlook. The Canadian dollar continues to be a slave to the flows and headlines today.
Today’s Suggested Range USD/CAD: 1.2400 – 1.2500
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange
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By Admin | January 28, 2015 | Daily Update |
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