USDCAD jumps from 1.1940 up to 1.2112 ahead of
tomorrow's Bank of Canada Announcement
tomorrow's Bank of Canada Announcement
USDCAD spot rate: 1.2075 - 1.2080 (AS AT 8:30AM PST)
RANGES:
|
Asia:
|
1.1940
|
to
|
1.1983
|
Europe:
|
1.1952
|
to
|
1.1993
|
|
North America:
|
1.1995
|
to
|
1.2112
|
Technical Support / Resistance:
S2
|
S1
|
R1
|
R2
|
1.1930
|
1.1984
|
1.2112
|
1.2200
|
Key Economic Data Releases:
-Canada
manufacturing shipments: -1.4% (exp. -0.7%)
Key Event Calendar:
DATE
|
CANADA
|
U.S.A.
|
Jan. 21
|
Bank of Canada interest rate
|
Building permits, housing starts
|
Jan. 22
|
Jobless claims, housing price index
|
|
Jan. 23
|
CPI, retail sales
|
Markit mfg PMI, existing home sales
|
Yesterday, USDCAD traded from 1.1985 down to 1.1937, marking
the 6TH consecutive day in
which USDCAD failed to close above the key tech level of 1.1984. However, the
inability to close below 1.1930 and generate a more sizeable correction opens
the door for further CAD weakness. USDCAD reversed course last night during the
Asian session climbing to 1.1983 despite better than expected China 4th quarter GDP data. The pairing broke
above 1.20 this morning as Canadian manufacturing shipments were weaker than
expected and oil dropped by as much a 3% today. USDCAD broke through last
week’s high of 1.2045 and has made gains to 1.2112 before easing back to
1.2070. There is speculation that the Bank of Canada may offer a dovish tone in
tomorrow’s monetary policy announcement with the recent plunge in oil affecting
both Canada’s trade deficit and inflation forecast. Currently, the TSX is up
1.14% while the DJIA is unchanged. EURCAD is down 1.2% trading between 1.3755
and 1.3964. GBPCAD is down 0.35% trading between 1.8090 and 1.8279. JPYCAD is
down 1.15% trading between 0.01017 and 0.01033. Gold is up 1% trading between
$1,255 and $1,278USD/oz, silver is up 2.53% trading between $16.90 and
$17.60USD/oz, while oil is up 2.55%, trading between $45.99 and $48.79.
Sources: Reuters, Bloomberg, FXStreet, RBC Capital Markets,
Bank of Canada, U.S. Federal Reserve, CNBC, Forexlive
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