VBCE Daily Foreign Exchange Update for Tuesday, Dec. 2nd, 2014

USDCAD spot rate: 1.1400 - 1.1405 (AS AT 8:45AM PST)

RANGES:	Asia:	1.1319	to	1.1333
	Europe:	1.1330	to	1.1363
	North America:	1.1363	to	1.1424

Technical Support / Resistance:

S2	S1	R1	R2
1.1230	1.1315	1.1465	1.1549

Key Economic Data Releases:

-U.S. construction spending: 1.1% (exp. 0.6%)

Key Event Calendar:

DATE	CANADA	U.S.A.
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

Yesterday, USDCAD traded from 1.1417 up to 1.1459, its highest level in nearly 5 years, before plummeting to 1.1314. The pairing remained near 1.1325 – 1.1335 for the balance of the session. Initially, in early Asian trade, commodity-based currencies broadly weakened as a Swiss referendum to boost central bank gold holdings did not pass. Gold and oil sold off heavily taking USDCAD up to a 5 year high of 1.1459. Commodity prices then bounced back aggressively during yesterday’s N.A. session (Gold up almost $80 from its lows, oil up nearly 10% from its lows) taking USDCAD down to an intra-day low of 1.1314. Overnight, the pairing corrected higher to 1.1363 with the USD trending higher /posting gains across the board. EURUSD has fallen has below 1.24 while USDJPY has posted a new 7 year high of 119.28. USDCAD has climbed to 1.1424 with pullbacks limited to 1.1390 thus far. The main event risk comes tomorrow with the Bank of Canada interest rate announcement. Also, job numbers are to be released Friday for both Canada and the United States. Currently, the TSX and the DJIA are up 0.29% and 0.37% respectively. EURCAD is unchanged trading between 1.4100 and 1.4169. GBPCAD is unchanged trading between 1.7784 and 1.7867. JPYCAD is unchanged trading between 0.00953 and 0.00957. Gold is down 1.38% trading between $1,192 and $1,213USD/oz, silver is down 1.42% trading between $16.09 and $16.52USD/oz, while oil is down 0.70%, trading between $66.76 and $69.34.

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 

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