VBCE Daily Foreign Exchange Update for Thursday, Jan. 15th, 2015
USDCAD spot rate: 1.1925 - 1.1930 (AS AT 8:55AM PST)
RANGES:
|
Asia:
|
1.1940
|
to
|
1.1975
|
Europe:
|
1.1950
|
to
|
1.1994
|
|
North America:
|
1.1803
|
to
|
1.1950
|
Technical Support / Resistance:
S2
|
S1
|
R1
|
R2
|
1.1733
|
1.1800
|
1.1984
|
1.2200
|
Key Economic Data Releases:
-U.S. initial jobless claims: 316k (exp. 291k)
-U.S. NY Empire State manufacturing index: 9.95 (exp. 5.0)
-U.S. Philadelphia Fed manufacturing survey: 6.3 (exp. 19.9)
-U.S. producer price index m/m: -0.3% (exp. -0.4%) y/y: 1.1% (exp. 1.0%)
-U.S. PPI ex food and energy m/m: 0.3% (exp. 0.1%) y/y: 2.1% (exp. 1.9%)
-U.S. NY Empire State manufacturing index: 9.95 (exp. 5.0)
-U.S. Philadelphia Fed manufacturing survey: 6.3 (exp. 19.9)
-U.S. producer price index m/m: -0.3% (exp. -0.4%) y/y: 1.1% (exp. 1.0%)
-U.S. PPI ex food and energy m/m: 0.3% (exp. 0.1%) y/y: 2.1% (exp. 1.9%)
Key Event Calendar:
DATE
|
CANADA
|
U.S.A.
|
Jan. 16
|
CPI, industrial production, consumer sentiment
|
|
Yesterday, USDCAD traded from 1.1948 up to 1.2017 before
falling to 1.1927. The pairing made an attempt higher mid-morning but failed to
sustain a break of 1.20 for the 3rd time and fell back to 1.1940. Oil continued its 2nd day of gains reaching $49 while markets
moved into positive territory. During the Asian session, the AUD outperformed
as Australia added 37,400 jobs (41,600 were full time) vs. exp. 3,800. Despite
firm oil prices, USDCAD pushed higher reaching 1.1994 in early European trade. The Swiss National Bank shocked markets by
removing its 3 year old cap of 1.20 for EURCHF. Despite also announcing a
negative deposit rate of 0.75%, the CHF surged across the board. CHFCAD climbed from 1.1710 up to 1.4753
before falling back to 1.3250. The extreme volatility saw oil make gains to
$51.44 – a 17% gain over the past 3 days. Combined with the failed 4TH attempt to break 1.20, USDCAD plunged
to 1.1803. The move was short-lived with the pairing bouncing back to 1.1950.
It’s since been confined to a 1.1910/40 range. Currently, the TSX is unchanged
while the DJIA is down 0.33%. EURCAD is down 2% trading between 1.3787 and
1.4106. GBPCAD is down 1% trading between 1.80 and 1.8250. JPYCAD is unchanged
trading between 0.01014 and 0.01027. Gold is up 2.40% trading between $1,226
and $1,266USD/oz, silver is up 1% trading between $16.70 and $17.23USD/oz,
while oil is down 2%, trading between $46.95 and $51.44.
Sources: Reuters, Bloomberg, FXStreet,
RBC Capital Markets, Bank of Canada, U.S. Federal Reserve, CNBC, Forexlive
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