Canadian Dollar Update March 2, 2016
USD/CAD Open: 1.3476-1.3477 Overnight Range: 1.3409-1.3490
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $34.03 and gold is at $1,233. US futures are lower. There are no major domestic data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3535. Support is at 1.3369.
The Canadian dollar is weaker this morning, but remains 9% above the 2016 lows set on the 20th of January. US ADP employment is today’s biggest release, which is often used as a proxy for the upcoming US employment report. CAD’s recent rally can be attributed to more stable oil prices, lower yield spreads, and an improvement in the broader market tone. With no domestic releases today, the Canadian dollar will be a slave to market flows. OIS are pricing in about a 25% chance of a 25bp rate cut in Canada over the next 12 months. The middle of March should prove to be eventful for the Canadian dollar.
Today’s Suggested Range USD/CAD: 1.3450 – 1.3550
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 | March 2, 2016 | Daily Update |
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