Canadian Dollar Update February 9, 2016
USD/CAD Open: 1.3909-1.3910 Overnight Range: 1.3851-1.3961
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $29.41 and gold is at $1,198. 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 1.3974. Support is at 1.3837.
The Canadian dollar is well supported, buoyed by yesterday’s speech from BoC Deputy Governor Lane. The Bank of Canada’s tone remains neutral, contrasting with OIS pricing in 20bps of easing over the next year. Lane highlighted the effectiveness of fiscal policy in a low interest rate environment, further showing the BoC’s anticipation of Finance Minister Morneau’s budget. Narrowing yield spreads between Canada and the US, alongside converging central bank tone could lead to fundamentally strength for CAD in the short-term. Oil prices remain low, dipping below $30/barrel once again as they give back recent gains. CAD will continue to tread water until further developments in oil prices and central bank policy gives it direction.
Today’s Suggested Range USD/CAD: 1.3850 – 1.3950
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 9, 2016 | Daily Update |
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