Canadian Dollar Update September 27, 2016
USD/CAD Open: 1.3245-1.3246 Overnight Range: 1.3163-1.3249
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $44.62 and gold is at $1,333. 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 1.3292. Support is at 1.3153.
The Canadian dollar is weak this morning, as markets react to the continued deterioration in expectations for an economic recovery in Canada. In yesterday’s speech Bank of Canada Governor Poloz alluded to a 3-5 year timeline for the Canadian economy to recover from the oil price shock. Markets are currently pricing in a 35% chance of a rate cut in Canada over the next 12 months. We expect monetary policy to continue to be the dominant driver in FX markets.
Today’s Suggested Range USD/CAD: 1.3200 – 1.3300
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.
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By Admin | September 27, 2016 | Daily Update |
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