Canadian Dollar Update February 22, 2016
USD/CAD Open: 1.3705-1.3706 Overnight Range: 1.3701-1.3793
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $31.35 and gold is at $1,212. 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 1.3821. Support is at 1.3690.
The Canadian dollar opens the week stronger, as risk appetite in the G-10 FX space has commodity currencies outperforming this morning. OPEC nations will continue discussions surrounding supply management of oil through to March 1st, which has had a positive effect on WTI. There will be a number of Fed speakers this week, which could help to provide more insight as to the Fed’s normalization path.
US inflation data was strong last week, and unemployment remains below 5%. If the inflation outlook continues to improve, we will surely see additional tightening from the Fed in 2016. Last week’s inflation data was ho-hum for Canada, with the large miss by Canadian retail sales raising some concerns about consumer spending moving forward. Over the next month we will get more insight as to how the Canadian economy has been performing in Q1 of 2016, with the marquee event being Finance Minister Morneau’s preliminary budget.
Today’s Suggested Range USD/CAD: 1.3650 – 1.3750
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
www.knightsbridgefx.com
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By Admin | February 22, 2016 | Daily Update |
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