Canadian Dollar Update June 19, 2015
USD/CAD Open: 1.2285-1.2287 Overnight Range: 1.2214-1.2292
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $59.75 and gold is at $1,202. US futures are higher. Today, Canada releases CPI figures for May.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.2297. Support is at 1.2175.
The Canadian dollar has weakened slightly on the basis of broad-based US dollar strength and weaker oil prices. Uncertainty surrounding the situation in Greece is mounting, leaving markets tepid. Today, Canada released inflation figures for the month of May. CPI rose 0.6% month-over-month in May, beating the consensus expectation of 0.5%. The modest inflation figures further validate the Bank of Canada’s hypothesis that the oil price shock was front-loaded in Q4 of 2014 and Q1 of 2015. Next week is scheduled to be quiet in respect to Canadian domestic data release, so this will continue to be a US dollar story. The outlook for the US dollar remains strong as the BoC is on the sidelines, oil prices are flat, and the US economic outlook will get better in the second half of the year.
Today’s Suggested Range USD/CAD: 1.2200 – 1.2300
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
www.knightsbridgefx.com
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By Admin | June 19, 2015 | Daily Update |
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