Canadian Dollar Update January 4, 2016
USD/CAD Open: 1.3908-1.3909 Overnight Range: 1.3817-1.3939
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $37.59 and gold is at $1,077. 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 1.3967. Support is at 1.3843.
The Canadian dollar is weaker this morning, as FX markets begin the week in risk-off mode. In the first full trading session of 2016, weakness is Chinese equities is reigniting growth concerns in China, and by extension, global growth concerns, contributing to the risk-off approach. Geopolitical concerns stemming from the Middle East are further contributors. Despite this morning’s weakness, CAD’s main drivers are positive, as oil prices are firmer. This month’s Bank of Canada meeting should help provide additional guidance on the Canadian economic outlook. The possibility of further stimulus from the Bank of Canada at some point in 2016 remains alive.
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 | January 4, 2016 | Daily Update |
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