Monday, November 17, 2014

VBCE Daily Foreign Exchange Update for Monday, Nov. 17th, 2014


USDCAD spot rate: 1.1310 - 1.1315 (AS AT 8:15AM PST)

RANGES:
Asia:
1.1269
to
1.1294
 
Europe:
1.1285
to
1.1320
 
North America:
1.1308
to
1.1328

Technical Support / Resistance:

S2
S1
R1
R2
1.1210
1.1265
1.1400
1.1440

Key Economic Data Releases:

-Foreign portfolio investment in Canadian securities: $4.37 billion (prev. $10.29 billion)
-Canadian portfolio investment in foreign securities: $8.64 billion (prev. $0.03 billion)
-U.S. industrial production: -0.1% (exp. 0.2%)
-U.S. capacity utilization: 78.9% (exp. 79.3%)
-U.S. NY Empire State manufacturing index: 10.16 (exp. 11.00)

Key Event Calendar:

DATE
CANADA
U.S.A.
 
 
 
Nov. 18
 
Producer price index, net long-term TIC flows
Nov. 19
 
Building permits, housing starts, FOMC minutes
Nov. 20
Wholesale sales
CPI, jobless claims, Markit mfg PMI, existing
 
 
home sales, Phil.Fed mfg survey, leading indicator
Nov. 21
Consumer price index
 

On Friday, the CAD was the best performing currency on better than expected manufacturing data and a rebound in commodity prices. Broad-based USD weakness was also evident for the 2ND Friday in a row as investors booked profits on long USD positions. USDCAD fell from 1.1394 down to a two week low of 1.1265 and closed the week near session lows. The theme is Asian trade overnight was broad-based USD weakness, the main catalyst - weak 3RD quarter GDP data out of Japan. With expectations of a 2.2% rise, GDP actually contracted by 1.6% on an annual basis. After trading to 117.04, USDJPY plunged to 115.45 as the NIKKEI lost 3%. The trend turned in Europe with equity markets stabilizing and the USD broadly gaining. USDJPY reversed back up to 116.45 while USDCAD climbed from 1.1269 up to 1.1320. After opening this morning’s session at 1.1308, USDCAD has climbed to 1.1328 and retraced back to 1.1308. Currently, the TSX is up 0.40% while the DJIA is relatively unchanged. EURCAD is down 0.25% trading between 1.4087 and 1.4177. GBPCAD is up 0.20% trading between 1.7669 and 1.7740. JPYCAD is unchanged trading between 0.00966 and 0.00976. Gold is unchanged trading between $1,181 and $1,194USD/oz, silver is down 1.45% trading between $16.05 and $16.48USD/oz, while oil is down 1%, trading between $74.74 and $76.15.
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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