Canadian Dollar Update December 16, 2015
USD/CAD Open: 1.3766-1.3767 Overnight Range: 1.3727-1.3779
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $37.21 and gold is at $1,071. US futures are higher. Today, the Fed makes its rate policy decision for December.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3797. Support is at 1.3691.
The Canadian dollar is slightly softer heading into today’s high-risk NA trading session. With the FOMC decision scheduled for 2PM, we could see considerable volatility. A dovish hike is largely expected (and priced in) by the Fed. With a 25bp rate hike being considered by most a certainty, risk will lie with the tone of the accompanying statement. A hawkish surprise is not out of the question, which is considerably less priced in.
While today’s FOMC decision will be the most important event of the day, the Canadian dollar has traded in tandem with oil prices for the last few sessions, so WTI will be an important factor for the Canadian dollar moving forward.
Today’s Suggested Range USD/CAD: 1.3650 – 1.3850
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 | December 16, 2015 | Daily Update |
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