Canadian Dollar Update July 30, 2015
USD/CAD Open: 1.2983-1.2984 Overnight Range: 1.2943-1.3027
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $48.86 and gold is at $1,082. US futures are lower. Today, the US released second quarter GDP figures.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3021. Support is at 1.2889.
Despite US second quarter GDP figures and yesterday’s Fed statement, the Canadian dollar continues to trade within a narrow range this week. Yesterday’s Fed statement was non-committal, leaving a rate hike at the September meeting firmly on the table. The Fed reaffirmed the strong labour market, and will be closely monitoring other economic indicators to assess inflation.
Today’s Q2 GDP release was promising, with the US economy growing by 2.3% in the second quarter of 2015. This fell slightly short of expectations, but Q1 GDP was revised upwards from -0.2% up to 0.6%, so on balance the US economy appears to be firming in 2015. Oil is slightly higher today, which bodes well for the Canadian dollar. However, decreasing demand for oil coupled with increased production levels will likely keep oil prices low for the rest of 2015. In the wake of this week’s US action, domestic data and oil prices will drive the Canadian dollar in the short-term.
Today’s Suggested Range USD/CAD: 1.2950 – 1.3050
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
www.knightsbridgefx.com
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By Admin | July 30, 2015 | Daily Update |
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