Canadian Dollar Update July 28, 2015
USD/CAD Open: 1.3012-1.3013 Overnight Range: 1.2995-1.3043
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $47.60 and gold is at $1,095. US futures are higher. There are no major data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3060. Support is at 1.2982.
The Canadian dollar has experienced little volatility early in the week, continuing to trade within a narrow range. With no major data releases scheduled for today, the Canadian dollar will likely tread water in anticipation of tomorrow’s FOMC meeting in the US. Although a rate hike is extremely unlikely tomorrow, sentiment will be closely analyzed in order to ascertain the Fed’s projected timeline for their first rate hike in the past 52 meetings.
The Fed’s goal of unemployment in the 5.2%-5.6% range has been achieved, with a strengthening US labour market resulting in an unemployment rate of 5.3%. However, wages have not seen commensurate growth, weighing on inflation, which is hovering close to half of the targeted 2%. Inflation has been persistently low in Canada as well, a contributing factor to the BoC’s most recent rate cut. There is some risk of volatility tomorrow as hawkish Fed sentiment has already been partially priced into the market, potentially resulting in a stronger Canadian dollar if Fed sentiment is more dovish than originally thought. With US second-quarter GDP to be released on Thursday, the focus remains on the US economy.
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
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 | July 28, 2015 | Daily Update |
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