VBCE Daily Foreign Exchange Update for Friday, Dec. 19th, 2014

USDCAD spot rate: 1.1600 - 1.1605 (AS AT 8:00AM PST)

RANGES:	Asia:	1.1567	to	1.1590
	Europe:	1.1576	to	1.1601
	North America:	1.1590	to	1.1633

Technical Support / Resistance:

S2	S1	R1	R2
1.1465	1.1567	1.1667	1.1700

Key Economic Data Releases:

(	Canada consumer price index m/m: -0.4% (exp. -0.2%) y/y: 2.0% (exp. 2.2%)
-	Bank of Canada CPI core m/m: -0.2% (exp. 0.1%) y/y: 2.1% (exp. 2.4%)
-	Canada retail sales m/m: 0.0% (exp. -0.2)	ex autos: 0.2% (exp. 0.2%)

	DATE		CANADA	U.S.A.
	Dec. 22			Existing home sales
	Dec. 23		GDP	Durable goods, GDP, consumer sentiment
	Dec. 24			Initial jobless claims
	Dec. 25		Christmas Day	Christmas Day
	Dec. 26		Boxing Day

Yesterday, USDCAD traded from 1.1648 down to 1.1569 before bouncing back to 1.1630 as a move up to $59 by oil could not be sustained and prices fell back towards $55. Despite the reversal in oil, the CAD was the best preforming currency yesterday as equity markets soared (DJIA up 400pts). The move up to 1.1630 was short-lived and USDCAD eased lower reaching session lows of 1.1575/80 in late North American trade. Overnight, the pairing dipped to 1.1567 and then bounced to 1.1601 ahead of this morning’s Canadian data releases. Inflation was softer than expected while retail sales were better than expected. USDCAD jumped from 1.1595 up to 1.1633 only to fall right back to 1.1600. Currently, the TSX and the DJIA are up 0.66% and 0.10% respectively. EURCAD is unchanged trading between 1.4204 and 1.4291. GBPCAD is unchanged trading between 1.8109 and 1.8230. JPYCAD is down 0.23% trading between 0.00970 and 0.00976. Gold is up 0.25% trading between $1,194 and $1,201USD/oz, silver is up 0.57% trading between $15.84 and $16.09USD/oz, while oil is up 2.80%, trading between $54.45 and $56.49.

 

Sources: Reuters, Bloomberg, FXStreet, RBC Capital Markets, Bank of Canada, U.S. Federal Reserve, CNBC, Forexlive