Canadian Dollar and US Dollar Update January 29, 2015
USD/CAD Open: 1.2530-1.2533 Overnight Range: 1.2511-1.2562
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $44.59 and gold is at $1,272. US futures are positive. Today, the US releases weekly jobless claims data.
The short term Canadian dollar technicals are negative. For today, USD resistance is at 1.2491. Support is at 1.2101.
US weekly jobless claims data beat expectations. Jobless claims were at their lowest level since mid 2000, a continued sign the US economy is on the right track. Yesterday, the FED indicated they would be in a position to raise interest rates later this year if the US economy continues on its current path. Meanwhile, oil prices hit a 6 year low. The story remains the same for the Canadian dollar – low oil prices and interest rate cut possibilities, while a strengthening US economy is boosting the US dollar. As oil prices move lower, this only exacerbates the impact on the Canadian dollar due to the Bank of Canada’s increased likelihood to cut rates with falling oil.
Today’s Suggested Range USD/CAD: 1.2500 – 1.2575
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange
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By Admin | January 29, 2015 | Daily Update |
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