Canadian Dollar Morning Update September 30, 2015
FX Morning Update September 30, 2015
USD/CAD Open: 1.3407-1.3408 Overnight Range: 1.3384-1.3413
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $45.01 and gold is at $1,117. US futures are higher. Today, Canada released GDP figures for the month of July.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3444. Support is at 1.3359.
Today Canada released GDP figures for July, which came in 0.3% m/m against expectations of 0.2%. This figure is slightly lower than June’s 0.5% surge, but it represents the second consecutive month the Canadian economy has expanded after contracting for the previous five months. Many economists are predicting Q3 growth to be in the 2.5%-3% range y/y, which would represent a recovery from Canada’s technical recession that was experienced in the first half of 2015. It’s also expected that during Q3 we will begin to see a more positive effect on Canadian exports, as the effects of the materially lower Canadian dollar will begin to trickle through the economy.
The GDP data is positive for the Canadian dollar and is one stepping stone in a longer term potential catalyst for the loonie. For a long term rally in the loonie, domestic data and oil prices need to get stronger. In the short-term the Canadian dollar will continue to track the broader market tone.
Today’s Suggested Range USD/CAD: 1.3350 – 1.3450
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
www.knightsbridgefx.com
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By Admin | September 30, 2015 | Daily Update |
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