Canadian Dollar Update May 20, 2016
USD/CAD Open: 1.3092-1.3093 Overnight Range: 1.3076-1.3133
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $48.00 and gold is at $1,259. US futures are higher. Today Canada releases CPI data for April.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3172. Support is at 1.3029.
The Canadian dollar is flat this morning, consolidating the losses of the prior few days. CPI data for April met expectations, with YOY inflation being 1.7%. The US dollar has gained momentum following last month’s Fed meeting minutes, which served as a reminder that the Fed could raise rates in 2016. Oil prices have been firmer, but athe correlation between CAD and WTI is not strong at the moment. Divergent monetary policy between Canada and the United States is likely to be the headline moving towards the middle of 2016.
Today’s Suggested Range USD/CAD: 1.3050 – 1.3150
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
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By Admin | May 20, 2016 | Daily Update | 0 comments