VBCE Daily Foreign Exchange Update for Tuesday, Nov. 25th, 2014

USDCAD spot rate: 1.1250 - 1.1255 (AS AT 8:01AM PST)

RANGES:	Asia:	1.1278	to	1.1299
	Europe:	1.1285	to	1.1316
	North America:	1.1230	to	1.1292

Technical Support / Resistance:

S2	S1	R1	R2
1.1192	1.1230	1.1316	1.1370

Key Economic Data Releases:

-Canada retail sales m/m: 0.8% (exp. 0.5%) ex autos: 0.0% (exp. 0.3%)

-U.S. GDP 3RD quarter: 3.9% (exp. 3.3%)

-U.S. GDP price index: 1.4% (exp. 1.3%)

-U.S. housing price index: 0.0% (exp. 0.5%)

-Richmond Fed manufacturing survey: 4 (exp. 17)

-U.S. consumer confidence: 88.7 (exp. 96.0)

Key Event Calendar:

DATE	CANADA	U.S.A.
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 1.1225 up to 1.1313 before falling back to hold near 1.1280/90 for the balance of the session. After being the best preforming currency last week, the CAD was one of the worst performing currencies yesterday. The pairing tested 1.1316 overnight before falling to 1.1260 ahead of this morning’s data releases. Canadian retail sales data surprised to the upside as did U.S. 3RD quarter GDP. The initial reaction was an all-around stronger USD with USDCAD moving up to 1.1290. The rally was short- lived and USDCAD dropped to 1.1230. The pairing has since bounced to 1.1255. Currently, the TSX is up 0.32% while the DJIA is down 0.07%. EURCAD is unchanged trading between 1.3987 and 1.4070. GBPCAD is unchanged trading between 1.7639 and 1.7741. JPYCAD is unchanged trading between 0.00953 and 0.00958. Gold is up 0.30% trading between $1,190 and $1,203USD/oz, silver is up 1.49% trading between $16.45 and $16.72USD/oz, while oil is up 0.17%, trading between $75.11 and $76.55.

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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