Today’s Canadian Dollar Update September 1, 2015
USD/CAD Open: 1.3138-1.3139 Overnight Range: 1.3123-1.3234
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $47.27 and gold is at $1,140. US futures are lower. Today, Canada releases second-quarter GDP figures.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3353. Support is at 1.2951.
The Canadian dollar is strong early in the week, as oil prices have rebounded strongly. Today Canada released second quarter GDP, which came in at -0.5% vs. expectations of -1.0%. Regardless of the upside surprise, if you can call it that, Canada is now in a technical recession.
To what extent the Canadian economy is actually in a recession remains unclear. The job market continues to improve, and spending has remained resilient. We are likely just seeing the effects of a sharp drop-off in capex for the oil and gas industry.
With the term recession being thrown around, this could affect consumer confidence and spending as consumers react to the headlines.
An improving domestic picture in the US should help the bank of Canada with its non-energy export-led growth strategy. As we move closer towards the September central bank meetings, relative monetary policy will continue to be an important driver of the Canadian dollar. As witnessed this week, oil will also be a primary factor.
Today’s Suggested Range USD/CAD: 1.3100 – 1.3200
Sincerely,
Rahim Madhavji | Knightsbridge Foreign Exchange | Toll-Free: 1-877-355-5239
www.knightsbridgefx.com
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By Admin | September 1, 2015 | Daily Update |
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