VBCE Daily Foreign Exchange Update for Thursday, Nov. 20th, 2014

USDCAD spot rate: 1.1295 - 1.1300 (AS AT 8:22AM PST)

RANGES:	Asia:	1.1338	to	1.1369
	Europe:	1.1327	to	1.1369
	North America:	1.1292	to	1.1335

Technical Support / Resistance:

S2	S1	R1	R2
1.1210	1.1265	1.1370	1.1440

Key Economic Data Releases:

-Canada wholesale sales: 1.8% (exp. 0.8%)

-U.S. consumer price index m/m: 0.0% (exp. -0.1%) y/y: 1.7% (exp. 1.6%)

- U.S. CPI ex food & energy m/m: 0.2% (exp. 0.1%) y/y: 1.8% (exp. 1.7%)

-U.S. initial jobless claims: 291k (exp. 285k)

-U.S. Markit Manufacturing: 54.7 (exp. 56.4)

-U.S. leading indicators: 0.9 (exp. 0.6)

-U.S. existing home sales: 5.26 million (exp. 5.16 million) % change: 1.5% (exp. 0.0%)

-U.S. Philly Fed manufacturing survey: 40.8 (exp. 18.3)

Key Event Calendar:

DATE	CANADA	U.S.A.
Nov. 21	Consumer price index

Yesterday, USDCAD traded from 1.1295 up to 1.1356 ahead of the 11:00am release of the U.S. Fed minutes. There was concern about low inflation and the USD subsequently weakened across the board taking USDCAD down to 1.1304. The pairing bounced back towards 1.1340 and continued to trade between 1.1310 and 1.1340 for about 30 minutes before finally breaking higher to 1.1360 as the USD broadly gained. The pairing made marginal gains overnight to 1.1369 before falling back to 1.1327. USDCAD opened this morning at 1.1335, dropped to 1.1292, and has since bounced to 1.1314 as the CAD is the best preforming currency this morning on better than expected Canadian wholesale sales data and flat U.S. inflation data. USDJPY made new highs up to 118.98 before correcting lower to 117.74 after the U.S. data releases. Tomorrow, Canadian CPI is expected to tick up from 2.0% to 2.1% (Core 2.1% to 2.2. Currently, the TSX and the DJIA are up 0.29% and 0.06% respectively. EURCAD is down 0.50% trading between 1.4168 and 1.4266. GBPCAD is down 0.20% trading between 1.7743 and 1.7805. JPYCAD is down 0.40% trading between 0.00955 and 0.00961. Gold is up 0.70% trading between $1,177 and $1,197USD/oz, silver is unchanged trading between $15.99 and $16.34USD/oz, while oil is up 0.70%, trading between $74.23 and $75.51.

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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