Canadian Dollar Update March 18, 2015 – It’s all about the FED!
USD/CAD Open: 1.2817-1.2819 Overnight Range: 1.2774-1.2835
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $42.17 and gold is at $1,147. US futures are negative. Today, the FED provides a monetary policy update.
The short term Canadian dollar technicals are negative. For today, USD resistance is at 1.2890. Support is at 1.2511.
The focus today is on the FED and their timeline for raising interest rates. The use of the word “patient” is being closely watched. The removal of the word “patient” which would signify a near term rate hike, likely in June, would be a boost for the US dollar. While the FED is likely to maintain its data dependent status on interest rate hikes, the US labor market has been strong. Oil prices remain weak on increasing stockpile reports and this is another Canadian dollar negative. The combination of the FED raising rates and oil prices moving lower is a perfect storm for the Canadian dollar.
Today’s Suggested Range USD/CAD: 1.2750 – 1.2890
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange
www.knightsbridgefx.com
By Admin | March 18, 2015 | Daily Update |
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