Canadian Dollar Update January 6, 2016
USD/CAD Open: 1.4058-1.4059 Overnight Range: 1.3973-1.4109
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $34.79 and gold is at $1,085. US futures are lower. Today, Canada releases merchandise trade data.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.4157. Support is at 1.3952.
The Canadian dollar is weaker this morning, falling to fresh multi-year lows. Commodity FX has been hit hard by the recent drop in oil, with the AUD, NZD and CAD all underperforming. Oil prices fell below $35/barrel again, further complicating the Canadian economic outlook for the Bank of Canada over the upcoming months.
Canada’s merchandise trade data was better than expected, posting a deficit of -1.99B against expectations of -2.60B. This positive trade data should serve to prop up Q4 GDP expectations, as the positive impact of greater net exports begins to flow through the Canadian economy. Today’s Fed meeting minutes release coupled with Friday’s dual employment release could lead to more volatility later in the week.
Today’s Suggested Range USD/CAD: 1.4000 – 1.4100
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 6, 2016 | Daily Update |
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