Canadian Dollar Update July 27, 2015
USD/CAD Open: 1.3023-1.3025 Overnight Range: 1.2978-1.3050
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $47.53 and gold is at $1,089. 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 1.3091. Support is at 1.2967.
The Canadian dollar continues to trade around last week’s levels in the absence of domestic data releases. Oil remains weak, as prices are now firmly below $50/barrel. This Wednesday, the US Fed will make its July rate decision. While it is extremely unlikely that the Fed decide to raise rates at July’s meeting, everyone will be watching for their comments. Despite a strong US labour market, inflation continues to lag behind the targeted 2%. Any indication of a delay in US rate hikes could be a blow to the US dollar as a rate hike is priced in for 2015.
On Friday, Canada will release GDP figures for the month of May. May’s GDP should provide further insight into the state of the Canadian economy over the second quarter, as the extent of 2014’s oil shock on the Canadian economy is still indeterminate. The US will additionally release Q2 GDP this week. With a busy week scheduled in the US, the Canadian dollar appears poised to be a price-taker.
Today’s Suggested Range USD/CAD: 1.3000 – 1.3100
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
www.knightsbridgefx.com
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By Admin | July 27, 2015 | Daily Update |
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