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Canadian Dollar Update February 8, 2016

USD/CAD Open: 1.3961-1.3962      Overnight Range:      1.3840-1.3978

The Canadian dollar was rangebound in overnight currency exchange markets.  Oil is at $30.08 and gold is at $1,181.  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 1.3986.  Support is at 1.3777.

Following last Friday’s data releases, the Canadian dollar opens the week flat. Oil prices have retreated towards $30/barrel, and metal prices are softer as well. Last week’s employment data highlighted significant labour market divergence, as Canadian unemployment rose to a multi-year high of 7.2%. Contrastingly, US unemployment was 4.9%, coupled with strong wage growth figures. Markets are pricing in an 80% chance of a 25bp rate cut in Canada sometime over the next 12 months. Until we see more positive Canadian economic data or higher oil prices, the Loonie will continue to fly into headwinds.

Today’s Suggested Range USD/CAD: 1.3950 – 1.4050

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Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239

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 8, 2016 | Daily Update | 0 comments

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