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
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
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By Admin | May 29, 2015 | Daily Update | 0 comments