VBCE Daily Foreign Exchange Update for Thursday, Oct. 23rd, 2014

USDCAD spot rate: 1.1240 - 1.1245 (AS AT 8:15AM PST)

RANGES:	Asia:	1.1232	to	1.1263
	Europe:	1.1232	to	1.1263
	North America:	1.1207	to	1.1255

Technical Support / Resistance:

S2	S1	R1	R2
1.1070	1.1185	1.1294	1.1360

Key Economic Data Releases:

-U.S. initial jobless claims: 283,000 (exp. 282,000)

-U.S. housing price index: 0.5% (prev. 0.2%)

-U.S. Markit manufacturing PMI: 56.2 (exp. 57.0)

-U.S. leading indicator: 0.8% (exp. 0.6%)

Key Event Calendar:

DATE	CANADA	U.S.A.
Oct. 24		New home sales
Oct. 27		Markit services, pending home sales
Oct. 28		Durable goods, consumer confidence
Oct. 29	Raw mat. / indust. product price index	Fed interest rate decision
Oct. 30		GDP Q3, Core PCE, jobless claims
Oct. 31	GDP	Core PCE price index, personal income /
		spending, consumer sentiment index

Yesterday, USDCAD was volatile initially trading from 1.1216 up to 1.1292 only to plunge to 1.1185/90 after the 7:00am Bank of Canada monetary policy statement. The pairing held a 1.1205 – 1.1240 range for a few hours and then remained near 1.1240 as North American equity markets turned lower with losses accelerating late in the day. Overnight, USDCAD climbed to 1.1263 and opened this morning’s session at 1.1247. A quick move down to 1.1207 has been followed by a return to opening levels at 1.1247. Equity markets have reversed yesterday’s losses while oil is up nearly $2 on reports that Saudi Arabia will reduce its oil supply. The Japanese yen is the worst performing currency with JPYCAD near a 2 week low, down nearly 3.5% from early last week’s 6 month high. (Spike high during the volatile market sell-off) Currently, the TSX and the DJIA are up 1.05% and 1.60% respectively. EURCAD is unchanged trading between 1.4192 and 1.4252. GBPCAD is unchanged trading between 1.7960 and 1.8075. JPYCAD is down 0.85% trading between 0.01040 and 0.01050. Gold is down 1.40% trading at $1,228USD/oz, silver down 0.41% trading at $17.16USD/oz, while oil is up 1.50%, trading at $81.80.

Sources: Reuters, Bloomberg, FXStreet, RBC Capital Markets, Bank of Canada, U.S. Federal Reserve, CNBC, Forexlive

Please contact the VBCE trading desk at 604-685-1016 for more information on our corporate foreign exchange and wire payment services. Updates by stevebrown@vbce.ca