Canadian Dollar Update February 29, 2016
USD/CAD Open: 1.3532-1.3533 Overnight Range: 1.3515-1.3587
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $33.18 and gold is at $1,229. US futures are higher. There are no major domestic data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3596. Support is at 1.3514.
The Canadian dollar opens the week trading at levels similar to last week. In the absence of domestic data, we’ve seen little movement in the Canadian dollar of late. WTI remains better supported above $30/barrel. This week we should begin to get an idea of Q1 economic performance in Canada and the US. Following upward revisions to Q4 data of last year, US economic performance will be particularly scrutinized as the Fed begins to assess how the economy responds to December’s rate hike.
With labour market and inflation data in the US looking promising, strong Q1 data for this year will reignite the discussion of a March rate hike, which has been virtually entirely priced out by markets. The Canadian dollar will continue to be heavily influenced by US monetary policy. In the middle of the month we will also see March’s major events for the Canadian dollar, including a Bank of Canada rate decision alongside the new Federal budget.
Today’s Suggested Range USD/CAD: 1.3500 – 1.3600
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 29, 2016 | Daily Update |
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