VBCE Daily Foreign Exchange Update for Thursday, Dec. 4th, 2014

USDCAD spot rate: 1.1372 - 1.1377 (AS AT 8:13AM PST)

RANGES:	Asia:	1.1351	to	1.1375
	Europe:	1.1341	to	1.1369
	North America:	1.1357	to	1.1397

Technical Support / Resistance:

S2	S1	R1	R2
1.1230	1.1315	1.1465	1.1549

Key Economic Data Releases:

-Canadian Ivey purchasing managers index: 56.9 (exp. 52.5)

-U.S. initial jobless claims: 297k (exp. 295k)

-Bank of England interest rate decision: unchanged @ 0.50%

-European Central Bank interest rate decision: unchanged @ 0.05%

Key Event Calendar:

DATE	CANADA	U.S.A.
Dec. 5	Int’l merchandise trade, employment	Trade balance
	change, Unemployment rate	Non-farm payrolls, unemployment rate

Yesterday, USDCAD traded from 1.1390 up to 1.1418 before falling to 1.1345. The pairing edged higher to hold near 1.1366 for the balance of the North American session. The main catalyst for the Canadian dollar’s strong performance yesterday was the slightly hawkish wording of Bank of Canada monetary policy statement. Overnight USDCAD dipped to 1.1341 and then climbed to 1.1397 after the ECB policy announcement which has resulted in a 2 cent gain by the EUR vs. both the CAD and USD. The ECB will wait until next year to evaluate the need for further stimulus, or to extend the purchase of asset backed securities to sovereign debt (U.S. style of quantitative easing). USCAD has since fallen to 1.1365 on broad- based USD weakness as U.S. equity markets trend lower. Tomorrow, Canada is expected to add 5,000 jobs after having added 43,100 jobs prior. The U.S. is expected to add 232,000 after having added 214,000 jobs previously. The unemployment rate in Canada is expected to tick up to 6.6% from 6.5%. The U.S. unemployment rate is expected to remain steady at 5.8%. Currently, the TSX and the DJIA are down 1.20% and 0.44% respectively. EURCAD is up 1.80% trading between 1.3957 and 1.4163. GBPCAD is up 0.50% trading between 1.7784 and 1.7887. JPYCAD is up 0.37% trading between 0.00947 and 0.00953. Gold is unchanged trading between $1,201 and $1,213USD/oz, silver is up 1% trading between $16.38 and $16.66USD/oz, while oil is down 1%, trading between $66.11 and $68.19.

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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