VBCE Daily Foreign Exchange Update for Monday, Nov. 24th, 2014

USDCAD spot rate: 1.1270 - 1.1275 (AS AT 8:12AM PST)

RANGES:	Asia:	1.1225	to	1.1245
	Europe:	1.1229	to	1.1249
	North America:	1.1244	to	1.1282

Technical Support / Resistance:

S2	S1	R1	R2
1.1134	1.1192	1.1282	1.1370

Key Economic Data Releases:

-U.S. Markit services PMI: 56.3 (exp. 56.8)

Key Event Calendar:

DATE	CANADA	U.S.A.
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

On Friday, USDCAD traded from 1.1326 down to 1.1192 before bouncing to a hold a 1.1225 – 1.1239 range for the balance of the session. The CAD was the best preforming currency last week with major gains seen Friday on higher than expected Canadian inflation data and a broad-based rally by commodity based currencies after a surprise interest rate cut by the Bank of China. USDCAD reached a 3 week low, EURCAD reached a 14 month low, GBPCAD an 11 month low, and JPYCAD a 7 year low. Overnight, USDCAD was unable to break below 1.1225 and the CAD has given up some of its gains from Friday. The pairing opened this morning’s session at 1.1244 and has climbed to test Friday’s North American session high of 1.1282 thus far. This level appears to be holding with USDCAD easing back to 1.1270. Tomorrow, Canadian retail sales are expected to bounce back with a 0.5% gain after a 0.3% fall the previous month. U.S. 3RD quarter GDP is expected to hold steady at 3.3% after a preliminary reading of 3.5%. Currently, the TSX is down 0.18% while the DJIA is up 0.09%. EURCAD is up 0.80% trading between 1.3889 and 1.4026. GBPCAD is up 0.70% trading between 1.7568 and 1.7703. JPYCAD is unchanged trading between 0.00950 and 0.00954. Gold is up 0.15% trading between $1,193 and $1,204USD/oz, silver is up 0.19% trading between $16.28 and $16.49USD/oz, while oil is up 0.13%, trading between $75.88 and $76.99.

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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