Canadian Dollar Update August 12, 2015
USD/CAD Open: 1.2983-1.2984 Overnight Range: 1.2951-1.3158
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $43.54 and gold is at $1,118. US futures are lower. Today, the EIA releases oil inventories.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3097. Support is at 1.2909.
The Canadian dollar has strengthened modestly today, trading near the top of the range of the last few weeks. Oil continues to slowly tick lower, with prices firmly below $45/barrel. Despite yesterday’s statement that China was making a one-time correction to the yuan by allowing it to depreciate by 1.9%, the PBOC allowed the yuan to depreciate a further 1.6% last night. China has caused uncertainty concerning the global economic growth and inflation, which has pressured the timeline for a US rate hike. The Canadian dollar has gained on broad US dollar weakness. It is less likely that the Fed would hike rates in September amidst a tepid global growth outlook. In the short-term, broader market sentiment and relative policy will remain important factors for the Canadian dollar.
Today’s Suggested Range USD/CAD: 1.2950 – 1.3050
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
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By Admin | August 12, 2015 | Daily Update | 0 comments