VBCE Daily Foreign Exchange Update for Monday, Dec. 1st, 2014

USDCAD spot rate: 1.1355 - 1.1360 (AS AT 8:52AM PST)

RANGES:	Asia:	1.1417	to	1.1459
	Europe:	1.1405	to	1.1443
	North America:	1.1348	to	1.1410

Technical Support / Resistance:

S2	S1	R1	R2
1.1230	1.1315	1.1465	1.1549

Key Economic Data Releases:

-Canada RBC manufacturing PMI: 55.3 (prev. 55.3)

-U.S. Markit manufacturing PMI: 54.8 (prev. 55.9)

-U.S. ISM manufacturing PMI: 58.7 (exp. 57.8)

Key Event Calendar:

DATE	CANADA	U.S.A.
Dec. 2		Construction spending
Dec. 3	Bank of Canada interest rate	ADP employment change, Markit services
		PMI, ISM non-manufacturing PMI
Dec. 4	Ivey PMI	Initial jobless claims
Dec. 5	Int’l merchandise trade, employment	Trade balance
	change, Unemployment rate	Non-farm payrolls, unemployment rate

On Friday, USDCAD traded from 1.1325 up to 1.1444 before closing the week at 1.1417. The CAD was the worst performing currency last week in reaction to the OPEC decision to leave oil production quotas unchanged at 30 million barrels per day. Oil dropped more than 6% to its lowest level in 4 years. Yesterday, in early Asian trade, commodity-based currencies broadly weakened as a Swiss referendum to boost gold holdings did not pass. Gold and oil sold off heavily taking USDCAD up to a 5 year high of 1.1459. Moody’s cut Japan’s sovereign debt rating from AA3 to A1 and the initial reaction saw USDJPY climb to a new 7 year high of 119.15. Global equity markets trended lower on the news with USDJPY falling to 117.88. USDCAD has fallen to 1.1350 this morning as commodities recover – gold and oil are up $60 and $5 respectively from their overnight lows. Currently, the TSX is down 0.86% while the DJIA is down 0.22%. EURCAD is down 0.25% trading between 1.4166 and 1.4254. GBPCAD is unchanged trading between 1.7843 and 1.7946. JPYCAD is down 0.20% trading between 0.00960 and 0.00966. Gold is up 3% trading between $1,143 and $1,204USD/oz, silver is up 4% trading between $14.15 and $16.46USD/oz, while oil is up 3%, trading between $63.76 and $68.45.
 

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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