Monday, November 3, 2014

VBCE Daily Foreign Exchange Update for Monday, Nov. 3rd, 2014

USDCAD spot rate: 1.1310 - 1.1315 (AS AT 8:20AM PST)

North America:

Technical Support / Resistance:


Key Economic Data Releases:

-Canada RBC manufacturing index: 55.3 (prev. 53.5 )
-U.S. ISM manufacturing index: 59.0 (exp. 56.2)
-U.S. Markit manufacturing index: 55.9 (exp. 56.2)
-U.S. construction spending: -0.4% (exp. 0.7%)

Key Event Calendar:

Nov. 4
Int’l merchandise trade
Trade balance, factory orders
Nov. 5
Housing starts
ADP employment change, Markit services
PMI, ISM non-manufacturing PMI
Nov. 6
Building permits, Ivey PMI
Initial jobless claims
Nov. 7
Net employment change,
Non-farm payrolls, unemployment rate
unemployment rate
Participation rate

On Friday, USDCAD traded from 1.1183 up to 1.1335 before falling to 1.1260 towards the end of the day. The main catalyst for the broad-based USD strength was a surprise announcement by the Bank of Japan. They expanded their monetary base / stimulus program from $50 billion yen / year to 80 billion yen / year citing concerns that lower oil prices will dampen their inflation outlook along with concerns over reduced consumer spending. The USDJPY has climbed nearly 9% in the last 3 weeks to its highest level in about 7 years. (from 105.20 up to 114.20over the past 3 weeks) USDCAD opened this morning’s session at 1.1283 and has climbed to 1.1325. Although the pairing has failed to test Friday’s high of 1.1335, pull-backs have been limited to 1.1308 thus far. Currently, the TSX and the DJIA are down 0.41% and 0.20% respectively. EURCAD is up 0.25% trading between 1.4049 and 1.4148. GBPCAD is up 0.30% trading between 1.7987 and 1.8109. JPYCAD is down 1% trading between 0.00991 and 0.01003. Gold is down 0.31% trading between $1,161 and $1,173USD/oz, silver down 0.44% trading between $15.78 and $16.16USD/oz, while oil is down 0.41%, trading between $79.68 and $80.96.

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
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