News image

Canadian Dollar Update September 18, 2019 – Canadian Dollar awaits FOMC

USD/CAD Open: 1.3243-1.3244 Overnight Range: 1.3236-1.3271

Oil is at $58.49 and gold is at $1,513.40. US markets are lower today.

The short-term USD/CAD technicals are neutral-bearish. For today, USD resistance is at 1.3288. Support is at 1.3225.

The Canadian dollar traded quietly and in a narrow range overnight. FX markets are in “wait and see” mode. They are waiting for today’s Federal Open Market Committee (FOMC) policy statement, updated economic projections and Fed Chair Powell’s press conference. They hope to see a clear monetary policy outlook.

The FOMC has been anything but transparent in their previous meetings this year, and they are not likely to break the streak today. The Committee is divided. Some members want to cut rates aggressively, others like them where they are, and still others think rates should be higher.

Don't Waste Money With Banks.
Get Exchange Rates Up to 2% Better With KnightsbridgeFX

Get An Exchange Quote Now

Analysts and traders are undecided about today’s Fed rate outcome. A little more than 54% expect the range for fed funds to be trimmed to 1.75-2.00% from 2.00-2.25%, leaving the balance expecting no change. That suggests the FX price action, including Canadian dollars, will be quite volatile when the statement is released and during the press conference.

FX markets were a tad skittish overnight, thanks to regional economic reports, oil price action and pre-FOMC meeting positioning. AUDUSD gave up early gains following disappointing Leading Index data, which has been in negative territory for eight of the past nine months. NZDUSD tracked AUDUSD lower with both currency pairs weighed by broad US dollar demand.

The Japanese yen drifted lower in a tight range. Traders ignored softer US Treasury yields and Japanese Trade data, in part due to the unwinding of safe-haven trades as oil price pressures eased.

GBPUSD peaked during the Asia session and sank in Europe under the weight of weak economic data and a lack of Brexit news. The Supreme Court hearing on whether proroguing parliament was legal is ongoing. If it rules against the government, it could lead to a new Brexit referendum. However, traders were more concerned about weaker than expected UK inflation data, which triggered selling. GBPUSD was also under pressure by broad US dollar strength and profit-taking following yesterday’s steep rally.

EURUSD traded with a negative bias but managed to hang on to most of yesterday’s gains. EURUSD traded in a 1.1039-1.1074 range, well above yesterday’s low of 1.0092. Eurozone August CPI rose 0.1% m/m, a tad weaker than the 0.2% forecast which weighed on prices.

Oil prices consolidate yesterday’s losses, trading in a $58.68-$59.40/barrel range. Prices eased from the oil-shock peak of $63.32 after Saudi Arabia said full oil production would resume shortly, and that close to 50% of pre-drone raid volumes were back on-line. However, the gap from last Friday’s $54.82/b closing level to Monday’s $$63.05 open is unfilled, suggesting prices may have more downside. However, tension remains high.

The Canadian dollar is vulnerable to weaker than expected domestic inflation data this morning.

Today’s Suggested Range USD/CAD: 1.3200 – 1.3300

Get Started With Knightsbridge Foreign Exchange

1

Get Your Free Quote

2

Book Foreign Exchange Rate

3

Send Funds

2

3

Step 1 : Get Your Free Quote

You completed 0% of your profile.

First Name *

Last Name *

Address *

City *

Province *

Postal Code *

Phone *

Email *

Occupation *

Date of Birth *

Please provide the reason for buying or selling the currency: *

(Travel, Bills to Pay, Purchase or Sale of Investment, etc.)

Please explain how you first obtain the source of funds being sold: *

(such as: Work Income, Sale of Investment, Gift, Inheritance, etc)

Are you or any close relative a Politically Exposed Foreign Person? *

(Head of State, Member of Senate, House of Commons, or Legistrature, etc)

Yes

No

I confirm I am not transacting on behalf of a third party and I have read and I agree to the Terms and Conditions

By KBFX | September 18, 2019 | Daily Update | 0 comments