Canadian Dollar Morning Update March 31, 2017- January GDP Surprises
USD/CAD Open: 1.3294-1.3295 Overnight Range: 1.3289-1.3369
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $50.25 and gold is at $1,244. US futures are lower. There are no major domestic data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3138. Support is at 1.3029.
CAD is stronger this morning, posting a small gain over the U.S. dollar this week at current levels. Underpinning CAD strength is a strong showing from January GDP (+0.6% MoM actual vs. +0.3% expected), continuing the recent string of upside surprises from the Canadian economy. Oil prices are also significantly better supported, with WTI gaining 7% this week. Central bank policy remains dominant in FX markets, as despite the overwhelmingly positive developments for CAD, the Canadian dollar has failed to appreciate materially this week (gains remain under 0.5% against the USD). Divergent monetary policy between Canada and the U.S. is poised to limit CAD upside in the short-term.
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.
Click Here to Subscribe
By Admin | March 31, 2017 | Daily Update |
0 comments