Canadian Dollar Update December 8, 2015
USD/CAD Open: 1.3612-1.3613 Overnight Range: 1.3495-1.3621
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $36.84 and gold is at $1,069. US futures are lower. There are no major data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3656. Support is at 1.3432.
The Canadian dollar is lower again this morning, as USD/CAD continues to make new 12 year highs. Oil prices are lower, moving towards levels last seen 7 years ago, as OPEC looks to have no plans to limit supply levels. The Bank of Canada has shown a willingness to react to low oil prices with monetary policy adjustments, making BoC sentiment in coming speeches important to monitor.
An increasingly dovish stance would be reasonable on the part of the Bank of Canada, given Canada’s recently poor economic data. The low Canadian dollar should have a positive impact on exports moving forward, but it will take time to fully recognize these flow-through effects. In the short-term, the Canadian dollar could remain volatile moving towards December’s FOMC meeting.
Today’s Suggested Range USD/CAD: 1.3550 – 1.3650
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 8, 2015 | Daily Update |
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