Canadian Dollar Morning Update July 11, 2014

USD/CAD Open: 1.0685-1.0687 Overnight Range: 1.0630-1.0687

The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $102.25 and gold is at $1,337. US futures are higher. Today, Canada releases jobs data.

The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.0850 and 1.0990. Support is at 1.0620 and 1.0510.

Canadian jobs data released this morning was worse than expected with 9.4k jobs lost vs. expectations of a 20k gain. This could take some momentum of the Canadian dollar’s recent strength. Soft data releases could push back the need for the Bank of Canada to raise interest rates mid next year. The Bank of Canada has some more ammunition to point to this soft data point and reiterate the need for economic growth to stabilize before it even thinks of raising interest rates and could talk down the recent Canadian dollar strength as it looks to boost exports. Look for the Canadian dollar to lose some momentum with this weak jobs data report.

Today’s Suggested Range USD/CAD: 1.0625 – 1.0725

Rahim Madhavji | Knightsbridge Foreign Exchange
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By Admin | July 11, 2014 | Daily Update | 0 comments