Canadian Dollar Update October 22, 2015
FX Morning Update October 22, 2015
USD/CAD Open: 1.3115-1.3116 Overnight Range: 1.3102-1.3146
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $45.99 and gold is at $1,169. US futures are higher. There are no major domestic data releases scheduled for today.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3190. Support is at 1.3014
The Canadian dollar is lower this morning, as yesterday’s Bank of Canada meeting delivered a dovish tone expressing concern over a softened growth forecast. Forecasts were downgraded for the rest of 2015 as well as the two subsequent years, which has been weighing on the Canadian dollar. Resource sector related investment is expected to fall precipitously, hamstrung by low commodity prices. The Bank of Canada is hoping that the lower Canadian dollar will have positive effects on non-energy exports, to lead the rebound in the Canadian economy.
In the short-term, this BoC meeting has made the divergent monetary policy between the US and Canada increasingly salient. Coupled with low commodity prices, the Loonie appears to lack a catalyst throughout the rest of 2015.
Today’s Suggested Range USD/CAD: 1.3100 – 1.3200
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
www.knightsbridgefx.com
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By Admin | October 22, 2015 | Daily Update |
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