FX Morning Update September 17, 2015
FX Morning Update September 17, 2015
USD/CAD Open: 1.3200-1.3201 Overnight Range: 1.3167-1.3204
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $46.68 and gold is at $1,117. US futures are flat. Today, the EIA releases oil inventories.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3250. Support is at 1.3152.
Today could prove to be a very volatile day for the Canadian dollar, as judgment day has arrived for the September FOMC rate policy decision. The consensus is pointing to a hold, but there are a multitude of other possibilities that could move markets. A surprise rate hike is certainly not out of the question, which would lend further strength to the already strong US dollar.
In the event of a rate hold, there is still considerable risk with the potential to move markets. Fed sentiment from the accompanying statement will be heavily scrutinized, especially with respect to the possibility of a rate hike later in 2015. Commentary pertinent to the first rate hike, as well as the magnitude of subsequent rate hikes will be pertinent. The more bearish the Fed sentiment, the lower the US dollar will go. The Fed has said in the past that they will not emulate the rate-hike model we saw last decade, which included a predictable 25bp hike every two months.
Look for the Canadian dollar to trade in an extremely narrow range as markets wait for the 2PM announcement. In the wake of the FOMC announcement, we could see large swings of volatility, depending on the outcome, as today’s Canadian dollar risk lies solely with the FOMC decision.
Today’s Suggested Range USD/CAD: 1.3050 – 1.3400
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.
By Admin | September 17, 2015 | Daily Update |
0 comments