VBCE Daily Foreign Exchange Update for Tuesday, Oct. 28th, 2014

USDCAD spot rate: 1.1170 - 1.1175 (AS AT 8:25AM PST)

RANGES:	Asia:	1.1234	to	1.1253
	Europe:	1.1217	to	1.1247
	North America:	1.1166	to	1.1219

Technical Support / Resistance:

S2	S1	R1	R2
1.1070	1.1166	1.1294	1.1360

Key Economic Data Releases:

-U.S. durable goods orders: -1.3% (exp. 0.5%) ex transportation: -0.2% (exp. 0.5%)

-U.S. consumer confidence: 94.5 (exp. 87.0)

-U.S. Case Shiller home price indices: 5.6% (exp. 5.8%)

-U.S. Richmond Fed manufacturing index: 20 (prev. 14)

Key Event Calendar:

DATE	CANADA	U.S.A.
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 traded from 1.1240 down to 1.1214 and then climbed to 1.1255 after Goldman Sachs reduced its oil price forecast for 2015 sending WTI oil down to $79.48, one of the lowest levels in the past two and a half years. USDCAD dipped to 1.1225 but climbed back to hold near 1.1240/50 for the balance of the session. The CAD was the worst performing currency yesterday but is the best performing currency this morning. Overnight oil remained above the $80 level and extended gains to $81.64. The USD broadly weakened sending USDCAD down to 1.1217. U.S. durable goods orders were poor and although the consumer confidence reached a 7 year high, the USD sell-off has continued this morning. USDCAD has broken below 1.1200 reaching a 3 week low of 1.1166 thus far. The market could be taking profit on long USD positions going into tomorrow’s U.S. Fed interest rate announcement / policy meeting where it is widely expected that the QE3 stimulus program will officially come to an end. Currently, the TSX and the DJIA are up 0.50% and 0.40% respectively. EURCAD is down 0.30% trading between 1.4225 and 1.4304. GBPCAD is down 0.50% trading between 1.8052 and 1.8142. JPYCAD is down 0.85% trading between 0.01034 and 0.01043. Gold is up 0.10% trading at $1,230USD/oz, silver up 0.40% trading at $17.23USD/oz, while oil is up 0.26%, trading at $81.21.

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