Tuesday, January 27, 2015

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.

 

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