Canadian Dollar Update August 11, 2015
USD/CAD Open: 1.3076-1.3077 Overnight Range: 1.2994-1.3102
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $43.80 and gold is at $1,108. US futures are lower. There are no major data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3118. Support is at 1.3015.
In the absence of domestic data releases, the Canadian dollar continues to trade in a narrow range. Modest gains made by the Canadian dollar yesterday were retraced today with China’s decision to devalue the yuan by 1.9%. It is speculated that China decided to make the move in response to weakening export figures, and the end result has been broader gains for the US dollar. It is indeterminate as to whether the yuan devaluation will affect the timeline of a US rate hike, as that would only buoy the US dollar further, pressuring the Fed’s inflation mandate. Oil remains low, falling below $44/barrel. A hawkish Fed coupled with low oil prices could lead to more pain for the Canadian dollar towards the end of 2015, although a lot is priced in to the loonie at the moment.
Today’s Suggested Range USD/CAD: 1.3050 – 1.3150
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.
By Admin | August 11, 2015 | Daily Update |
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