Meet Your CSR: Q&A With Gina W.

 

You might recognize Gina from VBCE. Perhaps you've had the pleasure of having her serve you right before you took off for one of your eagerly anticipated vacations. Or maybe she provided you advice on how to help you save more money for your business. What you may not know are all the tiny details of what makes Gina so special to all of her co-workers here at VBCE.  In this month's post of 'Meet Your CSR' we asked Gina a few questions to help you get to know her better!

 

Tell us a little bit about yourself

I have been in the customer service field for over 20 years and I love meeting new people and helping others.

What thoughts come to mind when you tell people you work at VBCE?

We are dedicated to providing our customers with the best service possible.

 

What is your dream destination for a vacation?

I have always wanted to go on a safari in Africa.

 

Favorite song you would listen to on your dream vacation?

This might sound cheesy but if I was in Africa, "Can You Feel the Love Tonight" from the Lion King comes to mind.

If you could take one person on a dream vacation with you, who would it be?

I would never go anywhere without my husband and my son.

What is the one thing that you can't travel without?

 I must have a good camera with me so that I can take lots of nice pictures to remember the trip by.

Tell us about a stand out customer that you have previously serviced.

I think that all of my customers are stand out people.

 

Give us a Foreign Exchange tip every savvy customer should know.

If you don't use up all of the currency from your trip, try to sell back the notes as soon as you can because it is possible that if you hold on to them for too long they may become outmoded and non-redeemable outside the country of origin.

 

What is your favorite piece of bullion that you have ever come across?

My very first bullion investment purchase, which was an Engelhard 100 oz silver bar.

 

 

Tell us something about yourself that might surprise some people!

I like to play Texas Hold'em poker.

 

If you have a comment for Gina leave one in the box below,
she would love to hear from you!

VBCE Daily Foreign Exchange Update for Friday, Jan. 30th, 2015

USDCAD posts new 6 year high of 1.2799 before falling back to 1.2677

USDCAD spot rate: 1.2690 - 1.2695 (AS AT 8:04AM PST)

RANGES:	Asia:	1.2608	to	1.2640
	Europe:	1.2644	to	1.2677
	North America:	1.2653	to	1.2799

Technical Support / Resistance:

S2	S1	R1	R2
1.2380	1.2503	1.2713	1.2800

Key Economic Data Releases:

-Canada GDP m/m: -0.2% (exp. 0.0%)

-U.S. GDP 4TH Quarter annualized (preliminary): 2.6% (exp. 3.3%)

-U.S. GDP price index: -0.1% (exp. 1.0%)

-U.S. Chicago PMI: 59.4 (exp. 57.5)

-U.S. consumer sentiment index: 98.1 (exp. 98.2)

Key Event Calendar:

DATE	CANADA	U.S.A.
Feb. 2	RBC manufacturing PMI	Personal income / spending, Markit mfg,
		construction spending, ISM mfg PMI
Feb. 3	Raw material / Industrial prod. Price	Factory orders
Feb. 4	Ivey PMI	ADP employment change, Markit services
		PMI, ISM non-mfg PMI
Feb. 5	Int’l merchandise trade	Trade balance, jobless claims
Feb. 6	Net employment change	Non-farm payrolls, unemployment rate,
	Unemployment rate, participation	participation rate
	rate, building permits

Yesterday, USDCAD traded from 1.2512 up to 1.2678 before falling back to 1.2611. The pairing climbed to 1.2677 ahead of the Canadian and U.S. GDP data releases. Both countries missed estimates and although the initial reaction sent USDCAD from 1.2653 up to 1.2799, the pairing has since fallen back towards 1.2677. Global equity markets remain volatile swinging between gains and losses and the JPY is the best performing currency reaching a 10 month high vs. the CAD. Since Dec. 7TH, 2014 – the yen has gained 15% vs. the CAD. Currently, the TSX is unchanged while the DJIA is down 0.47%. EURCAD is up 0.40% trading between 1.4280 and 1.4491. GBPCAD is up 0.35% trading between 1.9004 and 1.9276. JPYCAD is up 1.2% trading between 0.01065 and 0.01088. Gold is up 1% trading between $1,257 and $1,275USD/oz, silver is up 1.80% trading between $16.83 and $17.20USD/oz, while oil is up 2%, trading between $44.19 and $45.64.

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

 

USDCAD extends above 1.2600 as U.S. Fed maintains status quo

VBCE Daily Foreign Exchange Update for Thursday, Jan. 29th, 2015

USDCAD spot rate: 1.2605 - 1.2610 (AS AT 8:11AM PST)

RANGES:	Asia:	1.2512	to	1.2541
	Europe:	1.2514	to	1.2562
	North America:	1.2529	to	1.2613

Technical Support / Resistance:

S2	S1	R1	R2
1.2380	1.2503	1.2713	1.3063

Key Economic Data Releases:

-U.S. Fed interest rate decision: http://www.federalreserve.gov/newsevents/press/monetary/20150128a.htm
-U.S. initial jobless claims: 265k (exp. 300k)

-U.S. pending home sales: -3.7% (exp. 0.5%) y/y: 6.1% prev. 4.1%)

Key Event Calendar:

DATE	CANADA	U.S.A.
Jan. 30	GDP	GDP, consumer sentiment index

Yesterday, USDCAD traded from 1.2390 up to 1.2537, effectively erasing Tuesday’s move from 1.2502 down to 1.2380. The pairing was holding near 1.2455 when the 11:00am U.S. Fed announcement was made. A brief dip to 1.2430 was short-lived and followed by a move up to 1.2537. The Fed announcement was not as dovish as the market had anticipated given recent central bank activity in Japan, Europe, and Canada. Equity markets plunged as the Fed continues with its upbeat assessment of the U.S. economy and wait-and-see attitude towards interest rate “lift off”. Overnight, USDCAD eased marginally to 1.2512 before climbing to 1.2562. A pull-back this morning to 1.2529 has been followed by a surge to 1.2640 as oil falls below $44. Tomorrow, Canadian GDP is expected to be unchanged after a 0.3% rise previously. U.S. 4TH quarter GDP is expected to be 3.3% on an annualized basis, down from 5.0%. Currently, the TSX and the DJIA are down 0.84% and 0.26% respectively. EURCAD is up 1% trading between 1.4113 and 1.4282. GBPCAD is up 0.15% trading between 1.8933 and 1.9013. JPYCAD is unchanged trading between 0.01061 and 0.01067. Gold is down 1.40% trading between $1,263 and $1,286USD/oz, silver is down 4% trading between $17.11 and $18.03USD/oz, while oil is down 1%, trading between $43.71 and $44.94.

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

 

Paymasters Beware, A Call to Arms

 

A National Bestseller or is it?

 

The move by the Swiss central bank on Thursday January 15th that we detailed in last week’s dispatch, to give up its peg against the euro looks to have been a seminal moment in the currency war as the race to the bottom by global central banks is back on. There has been a call to arms since the Swiss move with no less than nine central banks making moves. Six central banks surprised the markets with an interest rate cut – Canada (http://bit.ly/1yHJaII), Denmark, Egypt, India, Peru, and Turkey. South Africa’s central bank surprised the markets with a strong shift from neutral to dovish tilt. The central bank of China added stimulus via liquidity injections and the ECB unleashed its long awaited QE which will inject about €60 billion per month until September 2016.

 

The ECB’s move received the lion’s share of the media coverage given that it is one of the three most prominent central banks next to the BOJ and the Fed.

 

 

We took an informal survey on the trading desk asking the dealers which currency they thought was the worst performer for the week and overwhelmingly they all thought that the euro was the worst performer. As you can see from the performance chart, the euro was in the middle of the pack – that’s what media headlines do, they shape your opinion. The euro was in the middle of the pack because much of what the ECB was already priced in while the move by the Bank of Canada was a much bigger surprise to the markets. Notice how the worst performers were the AUD and NZD and they didn’t make any monetary moves. Speculators sold down the AUD and NZD because they expect that Reserve Bank of Australia and the Reserve Bank of New Zealand will respond in a similar way. The market is now pricing in two rate cuts by the RBA in 2015 and they expect that the RBNZ will give up its hawkish position and keep rates on hold.

 

 

 

Why are these central banks easing monetary policies? In a single word: deflation. Look at the weekly chart of the CRB index, which represents 28 commodities. It has now fallen to a level not seen since 2009. Central banks fear deflation; it is a lot more difficult to deal with then inflation. This makes perfect sense as you can always raise interest rates and curtail monetary stimulus to combat inflation but what do you do when you can’t cut interest rates anymore to fight deflation. We’re afraid that the real answer is that central banks can’t fight deflation because it is caused by the lack of aggregate demand. In our opinion, the lack of aggregate demand is best addressed by letting the capitalistic system work – let companies fail to find the equilibrium. If central planners insist in addressing the lack of demand they should give money directly to the public instead of giving it to the bankers via QE – it seems obvious that the trickle down effects of QE hasn’t been able to boost inflation. Giving funds directly to the public will cause them to spend it thereby spurring inflation.

As more central banks ease monetary policy, the hawkish bias of the Fed will make the USD more attractive to global investors. This week’s Fed policy statement on Wednesday will be scrutinized for any subtle changes. The market will be looking to see if the Fed telegraphs any change in the timing of its first rate hike. Any change that pushes the rate hike further out would give the market a reason to sell the USD. Until then, look for the USD to continue to push higher against all currencies.

 

How much higher do you think the USD will go? Leave us a comment below! 

 

 

 

 

VBCE Daily Foreign Exchange Update for Tuesday, Jan. 27th, 2015

USDCAD tests 1.25 and then falls to 1.2380/85

USDCAD spot rate: 1.2390 - 1.2395 (AS AT 8:15AM PST)

RANGES:	Asia:	1.2470	to	1.2495
	Europe:	1.2442	to	1.2502
	North America:	1.2475	to	1.2475

Technical Support / Resistance:

S2	S1	R1	R2
1.2200	1.2314	1.2504	1.2713

Key Economic Data Releases:

-U.S. durable goods orders: -3.4% (exp. 0.5%) ex transportation: -0.8% (exp. 0.6%)

-U.S. Markit services purchasing managers index: 54.0 (exp. 53.8)

-U.S. consumer confidence: 102.9 (exp. 95.1)

-U.S. new home sales: 1.032 million (exp. 0.450 million) % change: 11.6% (prev. -6.7%)

-U.S. Richmond Fed manufacturing: 6 (exp. 6)

Key Event Calendar:

DATE	CANADA	U.S.A.
Jan. 28		Fed interest rate decision
Jan. 29		Jobless claims, pending home sales
Jan. 30	GDP	GDP, consumer sentiment index

Yesterday, USDCAD traded from 1.2420 up to 1.2475 before falling back to 1.2405/10 in North American trading. The move lower was short-lived with USDCAD bouncing back towards 1.2464. The pairing continued higher overnight reaching the 80 cent mark (1.2500) before falling back to 1.2475 at the North American open. Weaker than expected U.S. durable goods data and general market weakness (EURSTOXX down 1.53% / DJIA down 300pts.) has resulted in broad-based USD weakness as the market awaits tomorrow’s U.S. Fed announcement. USDCAD has fallen to 1.2380/85 matching last Friday’s post Canadian data low. We’ve seen a minor bounce back towards 1.2407. The EURO is the top performer extending its post Greece election gains to 1.1422 – up two cents on the day. Currently, the TSX and the DJIA are down 0.80% and 2% respectively. EURCAD is up 0.70% trading between 1.4010 and 1.4148. GBPCAD is up 0.25% trading between 1.8764 and 1.8894. JPYCAD is unchanged trading between 0.01052 and 0.01060. Gold is up 1% trading between $1,272 and $1,297USD/oz, silver is up 1% trading between $17.55 and $18.20USD/oz, while oil is up 0.80%, trading between $44.65 and $45.72.