VBCE Daily Foreign Exchange Update for Friday, Jan. 23rd, 2015

USDCAD spot rate: 1.2397 - 1.2402 (AS AT 8:40AM PST)

RANGES:	Asia:	1.2360	to	1.2409
	Europe:	1.2368	to	1.2428
	North America:	1.2380	to	1.2457

Technical Support / Resistance:

S2	S1	R1	R2
1.2200	1.2314	1.2457	1.2504

Key Economic Data Releases:

-Canada retail sales: 0.4% (exp. -0.2%) ex autos: 0.7% (exp. 0.1%)

-Canada consumer price index m/m: -0.7% (exp. -0.6%) y/y: 1.5% (exp. 1.5%)

-Bank of Canada CPI core m/m: -0.3% (exp. -0.4%) y/y: 2.2% (exp. 2.2%)

-U.S. leading indicators: 0.5% (exp. 0.4%)

-U.S. existing home sales: 5.04 million (exp. 5.06 million) % change: 2.4% (exp. 2.4%)

-U.S. Markit manufacturing: 53.7 (exp. 54.0)

Key Event Calendar:

DATE	CANADA	U.S.A.
Jan. 26
Jan. 27		Durable goods orders, Markit services PMI,
		consumer confidence, new home sales
Jan. 28		Fed interest rate decision
Jan. 29		Jobless claims, pending home sales
Jan. 30	GDP	GDP, consumer sentiment index

Yesterday, USDCAD remained volatile in a 1.2314 – 1.2389 range after the European Central Bank introduced stimulus measures of EUR60 billion / month to start March 2015 and end in Sept. 2016. Part way through the North American session, USDCAD broke higher reaching 1.2420 before easing back towards 1.2365. Overnight, the pairing climbed to 1.2457 ahead of the 5:30am Canadian data release. Inflation data was close to expectation while retails sales beat estimates sending USDCAD down to 1.2380. The move was short lived with the pairing bouncing to 1.2417. USDCAD appears to be stalling at this level and has since fallen back to 1.2395/1.2400. Currently, the TSX is up 0.33% while the DJIA is down 0.27%. EURCAD is down 0.70% trading between 1.3805 and 1.4095. GBPCAD is up 0.35% trading between 1.8530 and 1.8663. JPYCAD is up 0.80% trading between 0.01041 and 0.01056. Gold is down 0.85% trading between $1,284 and $1,302USD/oz, silver is down 0.57% trading between $18.12 and $18.40USD/oz, while oil is unchanged, trading between $45.38 and $47.73.

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