Canadian Dollar and US Dollar – FX Morning Update January 6, 2015
USD/CAD Open: 1.1789-1.1791 Overnight Range: 1.1730-1.1791
The Canadian dollar was volatile in overnight currency exchange markets. Oil is at $48.93 and gold is at $1,210. US futures are mixed. Today, there are no major data releases.
The short term Canadian dollar technicals are negative. For today, USD resistance is at 1.1880. Support is at 1.1721.
Oil prices continue to fall and are now under $50/bbl decisively. While falling oil prices help consumers, a number of businesses leveraged to the energy sector will feel a strong impact. The ripple effect is unknown. US yields have fallen below 2% driven by risk aversion. The US dollar remains the ultimate safe haven currency. Expectations of a rate hike in Canada continue to be pushed out. The strong US economy, falling oil prices, and interest rate expectations are crushing the Canadian dollar. Loonie bulls are hoping the trickledown effect from a stronger US economy will come sooner rather than later.
Today’s Suggested Range USD/CAD: 1.1750 – 1.1850
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange
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By Admin | January 6, 2015 | Daily Update |
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