Canadian Dollar Update February 10, 2016
USD/CAD Open: 1.3899-1.3900 Overnight Range: 1.3819-1.3921
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $28.05 and gold is at $1,187. 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 1.3934. Support is at 1.3761.
Today’s events are headlined by Fed Chair Yellen’s appearance on The Hill at the House Financial Services panel. Market participants are expecting some further market commentary from Yellen, hoping to glean more information about the rate hike timeline for 2016. An increasingly dovish stance is expected, as it’s expected that global growth concerns could alter the Fed’s perception of US economic growth, as well as inflation.
The US economy is pacing 2.5% growth for Q1, along with unemployment of 4.9%, so these concerns might be overstated. It’s expected that Yellen won’t take a March hike off the table, but it’s possible. The Fed had originally projected 4 rate hikes in 2016, which is looking increasingly unlikely. Oil prices are still low, which isn’t CAD supportive. The Loonie’s direction today will in all likelihood be determined by Yellen’s speech.
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 | February 10, 2016 | Daily Update |
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