VBCE Daily Foreign Exchange Update for Tuesday, Dec. 9th, 2014

USDCAD spot rate: 1.1415 - 1.1420 (AS AT 8:09AM PST)

RANGES:	Asia:	1.1474	to	1.1501
	Europe:	1.1465	to	1.1490
	North America:	1.1397	to	1.1468

Technical Support / Resistance:

S2	S1	R1	R2
1.1230	1.1315	1.1500	1.1549

Key Economic Data Releases:

-U.S. wholesale inventories: 0.4% (exp. 0.2%)

Key Event Calendar:

DATE	CANADA	U.S.A.
Dec. 10
Dec. 11	Capacity utilization, new house price	Retail sales, initial jobless claims
Dec. 12		Producer price index, consumer sentiment

Yesterday, USDCAD initially held a 1.1432 – 1.1449 range but then climbed to 1.1480/85 a new high for 2014 and the pairings highest level in nearly 5 years. The catalyst appears to have been a 3% fall in oil along with risk aversion flows. Global equity markets continued to sell off overnight (Shanghai down 5.43%, EURSTOXX50 down 2.36%) and the JPY is the best performing currency for the second straight day. After reaching a new 7 year high in early Monday trade, USDJPY has fallen from 121.85 down to 117.94. This pairing continues to be volatile having since bounced to 119.00. JPYCAD has climbed from 0.00939 up to 0.00965. USDCAD touched 1.1500 overnight but the pairing has come crashing down to 1.1397 on broad-based USD weakness. USDCAD has since bounced to 1.1430 and eased to 1.1420. Currently, the TSX and the DJIA are down 0.37% and 1.07% respectively. EURCAD is up 0.40% trading between 1.4125 and 1.4200. GBPCAD is unchanged trading between 1.7883 and 1.8015. JPYCAD is up 1% trading between 0.00950 and 0.00965. Gold is up 3% trading between $1,199 and $1,238USD/oz, silver is up 5% trading between $16.30 and $17.20USD/oz, while oil is up 0.84%, trading between $62.28 and $64.11.

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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