VBCE Daily Foreign Exchange Update for Friday, Jan. 9th, 2015

VBCE Daily Foreign Exchange Update for Friday, Jan. 9th, 2015


USDCAD spot rate: 1.1850 - 1.1855 (AS AT 9:05AM PST)

RANGES:	Asia:	1.1812	to	1.1841
	Europe:	1.1822	to	1.1851
	North America:	1.1806	to	1.1890

Technical Support / Resistance:

S2	S1	R1	R2
1.1671	1.1800	1.1890	1.1984

Key Economic Data Releases:

-Canada housing starts: 180.6k (exp. 193.5k))

-Canada building permits: -13.8% (exp. 1.0%)

-Canada net employment change: -4,300 (exp. 15,000)

-Canada unemployment rate: 6.6% (exp. 6.6%) *participation rate: 65.9% (exp. 66.0%)

-U.S. Non-farm payrolls: 252,000 (exp. 240,000) *previous revised from 321k to 357k

-U.S. unemployment rate: 5.6% (exp. 5.7%) participation rate: 62.7% (exp. 62.9%)

-U.S. average hourly earnings: -0.2% (exp. 0.2%)

-U.S. wholesale inventories: 0.8% (exp. 0.3)

Key Event Calendar:

DATE	CANADA	U.S.A.
Jan.12		Labour market conditions index
Jan. 13
Jan. 14		Retail sales, business inventories
Jan. 15		Initial jobless claims, producer price index
Jan. 16		CPI, industrial production, consumer sentiment

Yesterday, USDCAD traded in a 1.1801 – 1.1844 range. The pairing climbed to 1.1850 overnight before falling to 1.1810 ahead of today’s 5:30am jobs data releases. The headline data favoured the USD and we saw a quick move up to 1.1850. Although the U.S. data added more jobs than expected including a large revision to November’s data, the “quality” of the jobs is suspect as average hourly earnings declined by 0.2%. On the other hand, Canada added 53,300 full time jobs while losing 57,700 part time jobs. USDCAD pulled back to 1.1810 but then climbed steadily making new highs of 1.1890. The pairing has remained choppy falling to 1.1840, bouncing to 1.1875, and falling again to 1.1850. Currently, the TSX and the DJIA are down 0.75% and 0.81% respectively. EURCAD is up 0.50% trading between 1.3934 and 1.4051. GBPCAD is up 1% trading between 1.7830 and 1.7990. JPYCAD is up 1% trading between 0.00987 and 0.0100. Gold is up 0.75% trading between $1,207 and $1,221USD/oz, silver is up 0.34% trading between $16.21 and $16.62USD/oz, while oil is down 2.87%, trading between $47.19 and $49.59.

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