Canadian Dollar Update August 19, 2015
USD/CAD Open: 1.3072-1.3073 Overnight Range: 1.3024-1.3078
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $42.40 and gold is at $1,123. US futures are lower. Today, the US released CPI data for the month of July.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3125. Support is at 1.3023.
The Canadian dollar could potentially see some volatility today as the US releases CPI data as well as the minutes from the July FOMC meeting. CPI data for the US slightly missed expectations 0.1% growth versus 0.2% expected, but the data was likely positive enough to support expectations of a rate hike this year.
July’s FOMC meeting minutes will be heavily scrutinized in an attempt to discern when the Fed will raise rates. With the labour market looking strong, the focus will be on the Fed’s confidence in the US economy to meet their inflation mandate. Inflation is likely to remain tame for the rest of 2015 due to the strong US dollar, renewed weakness in commodities, and concerns about global economic growth stemming from China. A moderation in the expectations for a 2015 rate hike in the FOMC minutes would serve to buoy the Canadian dollar, with a hawkish sentiment having the opposite effect.
Today’s Suggested Range USD/CAD: 1.3025 – 1.3125
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 19, 2015 | Daily Update |
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