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Canadian Dollar Update May 29, 2015 – Poor Canadian GDP Data Hurts Canadian Dollar

USD/CAD Open: 1.2512-1.2514 Overnight Range: 1.2410-1.2519

The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $58.45 and gold is at $1,189. US futures are lower. Today, Canada and the United States release GDP figures for Q1 of 2015.

The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.2509. Support is at 1.2382.

The Canadian dollar saw little change from yesterday in anticipation of today’s first quarter GDP releases. The United States economy shrank 0.7% in Q1, which was better than the expected contraction of 0.9%. Canada’s GDP shrank 0.1% in Q1, worse than expected, and this has the Canadian dollar retreating. Poor GDP numbers in Canada reinforce the lack of catalyst for the Canadian dollar. Many expect the US economy to be stronger in the latter half of the year while the outlook is a bit more uncertain for Canada’s economy. The Canadian dollar remains without a catalyst, except for an oil price rally as its saving hope, and this will continue to be a US dollar story.

Today’s Suggested Range USD/CAD: 1.2450 – 1.2550

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 | May 29, 2015 | Daily Update | 0 comments

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