Canadian Dollar Update February 28, 2017
USD/CAD Open: 1.3214-1.3215 Overnight Range: 1.3164-1.3227
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $53.59 and gold is at $1,256. US futures are lower. There are no major domestic data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3224. Support is at 1.3112.
A renewed focus on central bank policy has pushed CAD lower. Markets are now anticipating a higher probability of rate hike at the March Fed meeting, buoying the US dollar. In this context, tomorrow’s Bank of Canada meeting poses significant near-term risk to CAD. A rate hold is widely expected, with low inflation and persistent labour market slack likely points of interest for the BoC. Oil prices are lower, underpinning CAD weakness. US GDP figures for Q4 of 2016 were lower than expected (+1.9% QoQ vs. +2.1% expected). Event risk is elevated for CAD moving towards the end of the week.
Today’s Suggested Range USD/CAD: 1.3150 – 1.3250
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.
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By Admin | February 28, 2017 | Daily Update |
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