CPI and Retail Sales Data Help Canadian Dollar – Currency Exchange Morning Update June 20, 2014
USD/CAD Open: 1.0820-1.0822 Overnight Range: 1.0810-1.0827
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $107.04 and gold is at $1,313. US futures are higher. Today, Canadian CPI data is released.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.1180 and 1.1260. Support is at 1.0800 and 1.0610.
Canadian CPI data released this morning was stronger than expected at 0.5% vs. expectations of 0.2%. Canadian retail sales data also beat expectations with a gain of 1.1% vs. expectations of 0.4%. This has the US dollar at a five and a half month low vs. the Canadian dollar. The strong Canadian data makes it difficult for the Bank of Canada to remain neutral or hawkish when it comes to interest rate policy. The strong data will eventually force the Bank of Canada to indicate rates will rise sooner rather than later.
Today’s Suggested Range USD/CAD: 1.0750 – 1.0850
Rahim Madhavji | Knightsbridge Foreign Exchange
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By Admin | June 20, 2014 | Daily Update | 0 comments