VBCE Daily Foreign Exchange Update for Tuesday, Nov. 18th, 2014

USDCAD spot rate: 1.1305 - 1.1310 (AS AT 8:18AM PST)

RANGES:	Asia:	1.1272	to	1.1307
	Europe:	1.1260	to	1.1291
	North America:	1.1285	to	1.1324

Technical Support / Resistance:

S2	S1	R1	R2
1.1210	1.1265	1.1328	1.1384

Key Economic Data Releases:

-		U.S. producer price index m/m: 0.2% (exp. -0.1%)				y/y: 1.5% (exp. 1.3%)
-		U.S. PPI ex food & energy m/m: 0.4% (exp. 0.1%)				y/y: 1.8% (exp. 1.5%)
Key Event Calendar:
	DATE		CANADA		U.S.A.
	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

Yesterday, USDCAD traded from 1.1269 up to 1.1328 before falling back to hold a 1.1292 – 1.1307 range for the balance of the North American session. Broad-based USD and JPY weakness during the Asian session saw USDCAD dip to 1.1272. A move to 1.1260 in London has been followed by a bounce to 1.1324 this morning. U.S. inflation data was stronger than expected and the USD recovered some of its losses after the data release. The move up was short-lived with USDCAD immediately falling back to 1.1295. The pairing has since climbed back to 1.1315 and fallen to 1.1305/10. The best performing currency is the EURO benefitting from a stronger than expected ZEW economic sentiment survey (11.0 vs. exp. 4.3). The JPY continues to underperform as Japanese Prime Minister Abe delayed another sales tax hike by 18 months and called an election for next month. JPYCAD traded down to a new 7 year low of 0.00964. Currently, the TSX and the DJIA are up 0.43% and 0.24% respectively. EURCAD is up 0.75% trading between 1.4048 and 1.4191. GBPCAD is unchanged trading between 1.7612 and 1.7718. JPYCAD is unchanged trading between 0.00964 and 0.00970. Gold is up 0.81% trading between $1,183 and $1,204USD/oz, silver is up 0.52% trading between $16.01 and $16.42USD/oz, while oil is down 1.26%, trading between $74.49 and $76.39.

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 

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