Canadian Dollar Update March 6, 2015 – Strong US Jobs Data Helps US Dollar Strengthen
USD/CAD Open: 1.2582-1.2584 Overnight Range: 1.2455-1.2592
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $50.74 and gold is at $1,183. US futures are negative. Today, the US releases jobs data.
The short term Canadian dollar technicals are negative. For today, USD resistance is at 1.2660. Support is at 1.2341.
US jobs data released this morning was booming. The US created 295k jobs vs. expectations of 240k. The US unemployment rate fell to 5.5%. The recent jobs data report shows just how well the US economy is doing and why the FED will be on track to raise interest rates this summer. Canada’s trade deficit numbers released this morning were ugly. The trade deficit was more than double largely due to falling oil prices and the resource sector. This is a prime example of how Canada’s economy is resource dependent and why the Bank of Canada acted preemptively to cut interest rates. Oil is the canary in the coalmine for the Canadian economy. The strong US jobs data and poor Canadian trade deficit data should create momentum in the US dollar today and weakness in the Canadian dollar. The trend remains the friend for the US dollar. This could be an ugly summer for the Canadian dollar as the FED starts to raise interest rates while the Bank of Canada remains jittery.
Today’s Suggested Range USD/CAD: 1.2500 – 1.2600
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange
www.knightsbridgefx.com
By Admin | March 6, 2015 | Daily Update |
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