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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

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 12, 2015 | Daily Update | 0 comments

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