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
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
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By Admin | February 8, 2016 | Daily Update | 0 comments