VBCE Daily Foreign Exchange Update for Friday, Nov. 7th, 2014

USDCAD spot rate: 1.1345 - 1.1350 (AS AT 7:46AM PST)

RANGES:	Asia:	1.1420	to	1.1443
	Europe:	1.1424	to	1.1446
	North America:	1.1331	to	1.1448

Technical Support / Resistance:

S2	S1	R1	R2
1.1296	1.1330	1.1384	1.1440

Key Economic Data Releases:

-Canada net employment change: 43,100 (exp. -5,000)

-Canada unemployment rate: 6.5% (exp. 6.8%)

-Canada labour participation rate: 66.0% (exp. 66.0%)

-U.S. Non-farm payrolls: 214k (exp. 235k) *prior revised from 248k up to 256k

-U.S. unemployment rate: 5.8% (exp. 5.9%)

-U.S. participation rate: 62.8% (exp. 62.7%)

Key Event Calendar:

DATE	CANADA	U.S.A.
Nov. 10	Housing starts
Nov. 11	Remembrance Day	Veterans Day
Nov. 12		Wholesale inventories
Nov. 13	Bank of Canada review	Initial jobless claims
Nov. 14	Manufacturing shipments	Retail sales, consumer sentiment

Yesterday, USDCAD traded from 1.1380 up to 1.1441 before dropping back to 1.1390. The move lower was short-lived as USDCAD climbed back to hold a 1.1420 – 1.1443 range for the balance of the day. The pairing traded to 1.1448 just as the Canadian and U.S. job stats were being released at 5:30am this morning. The headline U.S. data was mixed while the Canadian data was far better than expected for the 2ND straight month. The unemployment rate in Canada reached a 6 year low and USDCAD dropped from 1.1448 down to 1.1331. A corrective bounce to 1.1380 has been followed by another move lower to 1.1345. The pairing has since stabilized in a 1.1345 – 1.1365 range. Since the release of the jobs data, the CAD is the best performing currency while the USD has been the worst performer, even losing ground to the down-trending JPY (after posting a new 7 year high of 115.58, USDJPY dropped to 114.46) and EURO. (initial move down to a 2 year low of 1.2358 followed by move up to 1.2442) Currently, the TSX is up 0.57% while the DJIA is down 0.15%. EURCAD is down 0.25% trading between 1.4056 and 1.4190. GBPCAD is down 0.80% trading between 1.7943 and 1.8127. JPYCAD is down 0.40% trading between 0.00986 and 0.00993. Gold is up 1% trading between $1,132 and $1,167USD/oz, silver up 1% trading between $15.08 and $15.77USD/oz, while oil is up 1.4%, trading between $77.49 and $79.22.

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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