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USD/CAD Open: 1.2986-1.2987
Overnight Range: 1.2959-1.2996
The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $66.78 and gold is at $1,303. US futures are mixed. There are no major domestic data releases scheduled for today. The US is on holiday today.
The short term Canadian dollar technicals are neutral. For today, US dollar resistance is at 1.2994. US dollar Support is at 1.2866.
“The Canadian dollar remains under pressure, following sharply lower oil prices.” Said Rahim Madhavji, President of KnightsbridgeFX, a Canadian currency exchange company that helps Canadians get better exchange rates than the banks. Market participants are concerned with the possibility of a supply rise, as major oil producers such as Saudi Arabia and Russia consider boosting production. There are no major releases scheduled for today’s session.
Wednesday’s Bank of Canada rate decision is the primary risk for the Canadian dollar in the short-term. A rate hold is expected. We expect the Canadian dollar to trade lightly during today’s Memorial Day session.
The key things to look out for the Canadian dollar are oil prices, NAFTA negotiations, US FED interest rate timeline, and domestic jobs and growth data.
Rahim Madhavji is the President of KnightsbridgeFX.com, a Canadian currency exchange that provides better rates than the banks to Canadians.
