Canadian Dollar Update May 4, 2017- March Trade Data Strong As Exports Rise
USD/CAD Open: 1.3728-1.3729 Overnight Range: 1.3700-1.3746
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $46.95 and gold is at $1,228. US futures are higher. Canada releases international trade data for March this morning.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3754. Support is at 1.3688.
The Canadian dollar appears to be consolidating around recent levels, trading narrowly over the past several sessions. Canadian trade data for March was positive, with exports rising materially (+3.8%), which is a positive sign. Weak trade data in the earlier part of the year will weigh on first quarter economic growth, however. CAD is vulnerable as yield spreads continue to move in CAD-negative manner with the 2Yspread testing multi-month highs. Oil is once again moving lower. Expectations for a rate hike in June are firming rapidly in the U.S., further accentuating the divergent monetary policy between Canada and the U.S.
Today’s Suggested Range USD/CAD: 1.3700 – 1.3800
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
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By Admin | May 4, 2017 | Daily Update | 0 comments