Canadian Dollar Morning Update March 8, 2016
USD/CAD Open: 1.3328-1.3329 Overnight Range: 1.3281-1.3359
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $38.14 and gold is at $1,273. 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 1.3374. Support is at 1.3259.
The Canadian dollar is soft this morning, as Chinese trade data has once again raised global growth concern, leading to broad-based risk aversion in FX. CAD has been a beneficiary of the risk-on trading that has dominated recent trading, so a reversal of recent gains is possible if this tone persists. Oil has rebounded over the past few sessions, with WTI entrenching itself above $35/barrel.
Yield spreads suggest potential for CAD also suggest potential for CAD downside, but of late there CAD and yield spreads have been disconnected, as oil has been the primary driver. Tomorrow’s BoC meeting commentary will be heavily anticipated by markets, as CAD is up almost 10% from the last meeting.
Today’s Suggested Range USD/CAD: 1.3300 – 1.3400
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 8, 2016 | Daily Update |
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