VBCE Daily Foreign Exchange Update for Friday, Nov. 21st, 2014

USDCAD spot rate: 1.1230 - 1.1235 (AS AT 8:15AM PST)

RANGES:	Asia:	1.1296	to	1.1314
	Europe:	1.1257	to	1.1326
	North America:	1.1192	to	1.1282

Technical Support / Resistance:

S2	S1	R1	R2
1.1134	1.1192	1.1370	1.1440

Key Economic Data Releases:

-Canada consumer price index m/m: 0.1% (exp. -0.2%) y/y: 2.4% (exp. 2.1%)

- Bank of Canada Core CPI m/m: 0.3% (exp. 0.2%) y/y: 2.3% (exp. 2.2%)

Key Event Calendar:

DATE	CANADA	U.S.A.
Nov. 24		Markit services PMI
Nov. 25	Retail sales	GDPQ3, housing price index, consumer confidence
Nov. 26		Core PCE price index, durable goods, jobless
		claims, personal income/spending, Chicago PMI,
		consumer sentiment, pending / new home sales
Nov. 27	Current account (Q3)
Nov. 28	GDP, raw material price index

Yesterday, USDCAD traded from 1.1338 up to 1.1369 before falling to a hold a 1.1292 – 1.1314 range for the balance of the session. The CAD was the best preforming currency on better than expected Canadian wholesale sales data and flat U.S. inflation data. Overnight, USDCAD climbed to 1.1326 and then dropped to 1.1257. The pairing opened this morning’s session at 1.1282 and plunged to 1.1192, its lowest level in about 1 month on stronger than expected inflation data and technical stop-loss selling triggered on the break below 1.1265. USDCAD has since bounced to hold a 1.1225 – 1.1239 range. Commodity based currencies broadly gained on a surprise interest rate cut by the Bank of China while the Euro has sold off heavily (down 3 cents vs CAD) on dovish comments by ECB president Draghi. The CAD is the best performing currency for the 2ND straight day with EURCAD reaching a 14 month low, GBPCAD an 11 month low, and JPYCAD a 7 year low. Currently, the TSX and the DJIA are up 0.36% and 0.68% respectively. EURCAD is down 0.2% trading between 1.3907 and 1.4205. GBPCAD is down 1% trading between 1.7542 and 1.7756. JPYCAD is down 0.20% trading between 0.00950 and 0.00962. Gold is up 1% trading between $1,187 and $1,207USD/oz, silver is up 2% trading between $16.13 and $16.61USD/oz, while oil is up 0.63%, trading between $75.64 and $77.79.

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.

 

Copyright © VBCE, All rights reserved.

---

For foreign currency exchange rates, visit www.vbce.ca/rates/major-currencies
For rates on precious metals, visit www.vbce.ca/rates/precious-metals
For questions, please contact us at info@vbce.ca  or 604-685-1008.
#120-800 West Pender Street, Vancouver, BC V6C 2V6