Canadian Dollar Update April 15, 2015 – Bank of Canada Decides Loonie’s Fate
USD/CAD Open: 1.2558-1.2560 Overnight Range: 1.2476-1.2568
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $54.03 and gold is at $1,193. US futures are higher. Today, the Bank of Canada releases an interest rate update.
The short term Canadian dollar technicals are negative. For today, USD resistance is at 1.2795. Support is at 1.2385.
Overnight, China reported GDP growth at 7% confirming that its economy is slowing down. The Canadian dollar was higher yesterday on broad based US dollar weakness after worse than expected US retail sales. Today, the Canadian dollar has given up some of those gains.
The Bank of Canada provides a policy update today. All eyes are focused on the Bank of Canada and while there are no interest rate changes to be expected today, the press conference could create some volatility for the Canadian dollar. It’s all going to be about how the BoC interprets recent economic data. Typically, the BoC has been conservative and dovish, worrying about the fallout of falling oil prices on the economy. While oil prices have certainly impacted Canada’s economy, it has not been “atrocious”. This may lead to the Bank of Canada moving towards a more neutral view of interest rates. Look for the Canadian dollar to rally if the Bank of Canada has a neutral outlook and the Canadian dollar could fall if the Bank of Canada sounds overly pessimistic on Canada’s outlook.
Today’s Suggested Range USD/CAD: 1.2450 – 1.2600
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
www.knightsbridgefx.com
By Admin | April 15, 2015 | Daily Update |
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