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)

RANGES:
Asia:
1.1274
to
1.1311
 
Europe:
1.1264
to
1.1289
 
North America:
1.1283
to
1.1325

Technical Support / Resistance:

S2
S1
R1
R2
1.1070
1.1150
1.1325
1.1384

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:

DATE
CANADA
U.S.A.
 
 
 
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 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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