Canadian Dollar Morning Update January 28, 2016
USD/CAD Open: 1.4060-1.4061 Overnight Range: 1.4046-1.4123
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $32.79 and gold is at $1,122. US futures are higher. There are no major data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.4159. Support is at 1.4030.
The Canadian dollar is quiet this morning, consolidating near the higher end of its 3 week range. Yesterday’s FOMC decision has led to outperformance in most currencies against the US dollar, particularly the AUD and NZD. The Fed was, as expected, more dovish pertaining to their 4 hike timeline for 2016. They did not take a rate hike in March off the table, but concern was expressed over the state of the global economy. Markets are currently pricing in one rate hike for 2016. Oil is better supported this morning, lending strength to the Canadian dollar. Oil prices, yield spreads, and broader risk sentiment will dictate the Canadian dollar’s path in the absence of domestic data.
Today’s Suggested Range USD/CAD: 1.4000 – 1.4100
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 | January 28, 2016 | Daily Update |
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