Monday, October 27, 2014

VBCE Daily Foreign Exchange Update for Monday, Oct. 27th, 2014



USDCAD spot rate: 1.1228 - 1.1233 (AS AT 8:15AM PST)

RANGES:
Asia:
1.1214
to
1.1240
 
Europe:
1.1217
to
1.1241
 
North America:
1.1225
to
1.1255

Technical Support / Resistance:

S2
S1
R1
R2
1.1070
1.1185
1.1294
1.1360

Key Economic Data Releases:
-U.S. Markit service PMI: 57.3 (exp. 58.0)
-U.S. pending home sales: 0.3% (exp. 0.5%)

Key Event Calendar:

DATE
CANADA
U.S.A.
 
 
 
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


On Friday, USDCAD traded from 1.1233 down to 1.1195 only to climb back and close the week near intra- day highs at 1.1241. Over the weekend, the results of the European bank stress tests were better than expected. Several Asian indices climbed higher while the EURO gained and USDCAD eased from 1.1240 down to 1.1214. Goldman Sachs reduced its oil price forecast for 2015 earlier this morning sending WTI from $81.24 down to $79.48, one of the lowest levels in the past two and a half years. USDCAD climbed from an overnight low of 1.1214 up to 1.1255. U.S. data this morning missed estimates while oil prices have recovered climbing back above $80 to $80.60. USDCAD has fallen from 1.1255 to 1.1225 accordingly where it has found support and since bounced to 1.1235. Currently, the TSX is down 0.72% while the DJIA is up 0.11%. EURCAD is up 0.30% trading between 1.4227 and 1.4285. GBPCAD is up 0.30% trading between 1.8058 and 1.8137. JPYCAD is up 0.30% trading between 0.01037 and 0.01043. Gold is down 0.21% trading at $1,229USD/oz, silver down 0.19% trading at $17.15USD/oz, while oil is down 1.14%, trading at $80.10.

 
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

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