Canadian Dollar Update July 14, 2015 – Bank of Canada Decision Will Impact Canadian Dollar
USD/CAD Open: 1.2726-1.2727 Overnight Range: 1.2716-1.2755
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $52.07 and gold is at $1,156. US futures are flat. Today, the US releases retail sales data for the month of June.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.2840. Support is at 1.2696.
The Canadian dollar has remained flat today. Iran has reached a nuclear agreement with the US and five other world powers, which will result in the lifting of tight international trade sanctions that would allow Iran to boost its oil exports. This agreement has led to a slight drop in oil prices in the short-term, hurting the Canadian dollar, and will put downwards pressure on oil prices for the remainder of 2015.
US retail sales today were weak, contracting 0.1% despite expectations of 0.2% growth. This soft data combined with a disappointing employment report for June could weigh on the possibility of a September rate hike. Tomorrow, the Bank of Canada will meet to make its rate decision. A rate cut remains on the table, which would further weaken the Canadian dollar in the short-term. The Bank of Canada’s decision tomorrow will have a major impact on the Canadian dollar. A rate cut could have the Canadian dollar tanking.
Today’s Suggested Range USD/CAD: 1.2700 – 1.2800
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
www.knightsbridgefx.com
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By Admin | July 14, 2015 | Daily Update |
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