VBCE Daily Foreign Exchange Update for Thursday, Nov. 6th, 2014

USDCAD spot rate: 1.1425 - 1.1430 (AS AT 8:29AM PST)

RANGES:	Asia:	1.1380	to	1.1415
	Europe:	1.1383	to	1.1403
	North America:	1.1390	to	1.1441

Technical Support / Resistance:

S2	S1	R1	R2
1.1296	1.1370	1.1440	1.1466

Key Economic Data Releases:

-Canada building permits: 12.7% (exp. 6.0%)

-Canada Ivey purchasing managers index: 51.2 (exp. 57.0)

-U.S. initial jobless claims: 278k (exp. 285k)

-Bank of England interest rate decision: unchanged at 0.50%

-European Central Bank interest rate decision: unchanged at 0.05%

Key Event Calendar:

DATE	CANADA	U.S.A.
Nov. 7	Net employment change,	Non-farm payrolls, unemployment rate
	unemployment rate	Participation rate

Yesterday, USDCAD traded from 1.1391 up to 1.1466, its highest level in 5 years. The move up was short- lived as USDCAD dropped to 1.1371 and failed to regain the 1.1400 level for any meaningful length of time. Oil prices surged $3 on smaller than expected U.S. inventory levels and a report about a pipeline explosion in Saudi Arabia. Also, Canadian 2ND quarter GDP was revised higher from 3.1% to 3.6%. Overnight, USDJPY gained to a new 7 year high (115.51) with the broad-based USD strength taking USDCAD up to 1.1415. The Japanese stock market dropped sharply late in its session sending USDJPY sharply lower to 114.06. The sudden bought of USD weakness caused USDCAD to drop to 1.1380. Global equity markets have since regained a firmer footing and the USD is the best performing currency this morning. UDJPY has rallied back to test the 115 level, EURUSD dropped from 1.2533 to 1.2396, its lowest level in more than 2 years on dovish ECB comments. USDCAD opened this morning at 1.1399, climbed to 1.1441, and then quickly dropped back to 1.1390. This move was short-lived and USDCAD has since bounced to 1.1435 and fallen back to 1.1415 in fairly choppy trade. Tomorrow, after adding 74,100 jobs prior, Canada is expected to show a 5,000 decline and the unemployment rate is expected to tick up from 6.8% to 6.9%. The U.S. is expected to add 231,000 jobs after adding 248,000 jobs in the previous month. The unemployment rate should hold steady at 5.9%. Currently, the TSX is unchanged while the DJIA is up 0.25%. EURCAD is down 0.25% trading between 1.4162 and 1.4298. GBPCAD is down 0.50% trading between 1.8129 and 1.8223. JPYCAD is up 0.20% trading between 0.00989 and 0.00999. Gold is unchanged trading between $1,138 and $1,149USD/oz, silver down 0.40% trading between $15.25 and $15.46USD/oz, while oil is down 1.4%, trading between $77.15 and $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