Canadian Dollar Update December 29, 2015
USD/CAD Open: 1.3889-1.3890 Overnight Range: 1.3865-1.3940
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $37.40 and gold is at $1,071. US futures are higher. There are no major data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3978. Support is at 1.3842.
The Canadian dollar is trading quietly amidst light holiday trading. As year-ends are quickly approaching, repositioning could be a major factor affecting the Canadian dollar over the coming days. Relative underperformance in Canadian equities could help the Canadian dollar from a repositioning standpoint. Oil prices remain low but have begun to stabilize around the $36-$38 per barrel range. 2Y yield spreads between Canada and the United States continue to widen, approaching levels last seen in 2007, further highlighting divergent monetary policy. Oil and relative policy will continue to be the main drivers of the Canadian dollar moving into 2016.
Today’s Suggested Range USD/CAD: 1.3850 – 1.3950
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 29, 2015 | Daily Update |
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