USDCAD spot rate: 1.1183 - 1.1188 (AS AT 8:10AM PST)
RANGES:
|
Asia:
|
1.1181
|
to
|
1.1211
|
Europe:
|
1.1188
|
to
|
1.1223
|
|
North America:
|
1.1163
|
to
|
1.1210
|
Technical Support / Resistance:
S2
|
S1
|
R1
|
R2
|
1.1070
|
1.1120
|
1.1225
|
1.1255
|
Key Economic Data Releases:
-U.S. Fed interest rate decision: unchanged at 0 – 0.25%
/ QE3 flows completed
-U.S. GDP Q3: 3.5% (exp. 3.0%)
-U.S.
Personal consumption expenditure price index: 1.3% (exp. 1.4%)
-U.S.
initial jobless claims: 287k (exp. 283k)
Key Event Calendar:
DATE
|
CANADA
|
U.S.A.
|
Oct. 31
|
GDP
|
Core PCE price index, personal income /
|
spending, consumer sentiment index
|
Yesterday, USDCAD initially traded from 1.1173 down to
1.1120/25, its lowest level in 3 weeks on broad- based USD weakness ahead of
the 11:00am U.S. Fed announcement. As expected, the Fed officially ended its
quantitative easing program and changed the rhetoric of its statement noting “a
range of labor market indicators suggests that underutilization of labor
resources is gradually diminishing (and) …that there has been a substantial
improvement in the outlook for the labor market since the inception of its
current asset purchase program.” In the 15 minutes that followed the
announcement, the USD jumped higher across the board taking USDCAD from 1.1135
up to 1.1225. The pairing fell back to hold in a 1.1180/90 range for the
balance of the session. USD strength continued overnight and just ahead of this
morning’s 3RD quarter U.S. GDP
release, USDCAD revisited the 1.1223 level. Although the headline reading of
3.5% was better than expected, it was mostly attributed to an 11% increase in
exports and a 2.4% decline in imports. Several components were weaker than
expected – especially the inflation component which fell to 1.3% from 2.1%.
USDCAD dropped to 1.1163/68 amidst broad-based USD weakness. EURUSD bounced
from 1.2548 – 1.2639 despite the European Central Bank announcing their plans
to buy asset backed securities (similar to the U.S. Fed’s QE program) while
USDJPY fell from 109.35 to 108.75. The move lower was short-lived and the USD
is reversing its losses with USDCAD back up to 1.1200. Currently, the TSX is down
0.60% while the DJIA is up 0.79%. EURCAD is down 0.15% trading between 1.4061
and 1.4144. GBPCAD is unchanged trading between 1.7858 and 1.7930. JPYCAD is
down 0.15% trading between 0.01025 and 0.01028. Gold is down 1.85% trading
between $1,196 and $1,216USD/oz, silver down 4.43% trading between $16.37 and
$17.22USD/oz, while oil is down 1.23%, trading between $80.89 and $82.06.
Sources: Reuters, Bloomberg, FXStreet,
RBC Capital Markets, Bank of Canada, U.S. Federal Reserve, CNBC, Forexlive
Please contact the VBCE trading desk at 604-685-1008 for more information on our foreign exchange and wire payment services. Updates by stevebrown@vbce.ca
The information contained in this report has been compiled by our VBCE traders from sources believed to be reliable, but no representation or warranty, express or implied, is made by VBCE as to its accuracy, completeness or correctness. All opinions and estimates contained in this report constitute VBCE’s judgment as of the date of this report, are subject to change without notice and are provided in good faith but without legal responsibility. Nothing in this report constitutes legal, accounting or tax advice or individually tailored investment advice. This material is prepared for general circulation to clients and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. This report is not an offer to sell or a solicitation of an offer to buy any currency or precious metals. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. To the full extent permitted by law neither VBCE nor any other person, accepts any liability whatsoever for any direct or consequential loss arising from any use of this report or the information contained herein. No matter contained in this document may be reproduced or copied by any means without the prior consent of VBCE
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