Canadian Dollar Update July 29, 2015
USD/CAD Open: 1.2949-1.2950 Overnight Range: 1.2917-1.2968
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $47.53 and gold is at $1,094. US futures are lower. Today, the Fed will release its July statement.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3027. Support is at 1.2896.
The Canadian dollar remains quiet early in the week in anticipation of today’s Federal Reserve statement, which will be released at 2:00pm EST. With unemployment currently being 5.3%, the US labour market is looking healthy. The risk for today’s statement lies with the Fed’s assessment of the economy’s ability to reach their inflation target of 2%. Amidst low oil prices and a strong dollar, the inflation outlook is the biggest risk to the Fed’s normalization plans.
The US dollar enters the Fed meeting with considerable downside risk, as markets have already priced in an eventual rate hike in 2015. If today’s Fed statement is dovish, citing inflation as an impairment to their reasonable confidence the economy can handle higher rates, we will see broad US dollar weakness. The EIA also releases oil inventories today, adding some short-term risk to oil prices. The Canadian dollar is poised to experience some volatility today.
Today’s Suggested Range USD/CAD: 1.2800 – 1.3000
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 29, 2015 | Daily Update |
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