Friday, December 12, 2014

VBCE Daily Foreign Exchange Update for Friday, Dec. 12th, 2014



USDCAD spot rate: 1.1560 - 1.1565 (AS AT 7:56AM PST)

RANGES:
Asia:
1.1518
to
1.1551
 
Europe:
1.1534
to
1.1584
 
North America:
1.1537
to
1.1591

Technical Support / Resistance:

S2
S1
R1
R2
1.1400
1.1465
1.1591
1.1627

Key Economic Data Releases:

-U.S. producer price index m/m: -0.2% (exp. -0.1%) y/y: 1.4% (exp. 1.4%)
-U.S. PPI ex food & energy m/m: 0.0% (exp. 0.1%) y/y: 1.8% (exp. 1.8%)
-U.S. consumer sentiment index: 93.8 (exp. 89.5)

Key Event Calendar:

DATE
CANADA
U.S.A.
 
 
 
Dec. 15
 
Industrial production, capacity utilization
Dec. 16
Manufacturing shipments
Building permits, housing starts, Markit mfg
Dec. 17
Wholesale sales
CPI, Fed interest rate decision
Dec. 18
 
Jobless claims, Markit services PMI
Dec. 19
CPI, retail sales
 

Yesterday, USDCAD traded from 1.1448 up to 1.1549 before falling back to 1.1520 late in the North American session. The main catalyst for CAD weakness was oil breaking below the $60 level. Overnight USDCAD climbed to 1.1584 and extended up to 1.1591 in early North American trade. This was followed by a dip to 1.1537 followed by a bounce to 1.1570. The pairing has since fallen sharply to test today’s Asian session low and has bounced to 1.1535. Currently, the TSX and the DJIA are down 0.25% and 0.87% respectively despite a better than expected U.S. consumer sentiment report. EURCAD is up 0.70% trading between 1.4284 and 1.4436. GBPCAD is up 0.20% trading between 1.8120 and 1.8227. JPYCAD is up 0.30% trading between 0.00968 and 0.00979. Gold is down 0.65% trading between $1,214 and $1,228USD/oz, silver is down 0.16% trading between $17 and $17.21USD/oz, while oil is down 2%, trading between $58.31 and $59.54.
Sources: Reuters, Bloomberg, FXStreet, RBC Capital Markets, Bank of Canada, U.S. Federal Reserve, CNBC, Forexlive

 

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