US Dollar and Canadian Dollar Exchange Rate Update September 2, 2015
USD/CAD Open: 1.3232-1.3233 Overnight Range: 1.3216-1.3278
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $44.65 and gold is at $1,137. US futures are higher. Today, the EIA releases oil inventories.
The short term Canadian dollar technicals are neutral. For today, USD resistance is at 1.3314. Support is at 1.3159.
The Canadian dollar is weaker this morning, as oil remains vulnerable. US ADP jobs for August were released this morning, with 190,000 jobs created versus and expectation of 200,000. This report shows the US economy continues to create jobs. Provided August’s official employment report remains strong, the Fed should have no concerns of meeting their unemployment mandate. However, the inflation picture remains murky. GDP figures for Q2 in the US were very strong, but it remains uncertain as to whether the inflation mandate of 2% will be met this year.
In Canada, yesterday’s Q2 GDP figures were far less compelling, showing economic contraction for the second straight quarter. However, the most recent month of data showed some promise. A rate cut remains a possibility over the next 12 months, although rising oil prices make that rate cut less likely. With Saudi Arabia adamant about retaining market share, and thus refusing to cut production, it appears oil prices will continue to be suppressed in the short-medium term. Oil has been the biggest driver of a Canadian dollar that has traded within a narrow range for the last week. Look for monetary policy to become an increasingly important factor early next week.
Today’s Suggested Range USD/CAD: 1.3200 – 1.3300
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 2, 2015 | Daily Update |
0 comments