Canadian Dollar Morning Update March 1, 2017
USD/CAD Open: 1.3319-1.3320 Overnight Range: 1.3284-1.3346
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $54.16 and gold is at $1,238. 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 1.3387. Support is at 1.3213.
A continued focus on central bank policy has pushed CAD lower ahead of today’s Bank of Canada rate decision. Yield spreads between Canada and the U.S. continue to widen in a CAD-negative manner, underpinning recent CAD weakness. There has been a material change in expectations for the March Fed meeting in the U.S., where a rate hike looks increasingly likely. The Bank of Canada is expected to hold rates today, with risk being centered around the statement tone. Persistent labour market slack, as well as soft inflation figures are likely to be discussed. The Bank of Canada statement is likely to set the tone for CAD trading today.
Today’s Suggested Range USD/CAD: 1.3250 – 1.3350
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.
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By Admin | March 1, 2017 | Daily Update |
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