Friday, January 30, 2015

VBCE Daily Foreign Exchange Update for Friday, Jan. 30th, 2015

USDCAD posts new 6 year high of 1.2799 before falling back to 1.2677

USDCAD spot rate: 1.2690 - 1.2695 (AS AT 8:04AM PST)

RANGES:
Asia:
1.2608
to
1.2640
 
Europe:
1.2644
to
1.2677
 
North America:
1.2653
to
1.2799

Technical Support / Resistance:

S2
S1
R1
R2
1.2380
1.2503
1.2713
1.2800

Key Economic Data Releases:

-Canada GDP m/m: -0.2% (exp. 0.0%)
-U.S. GDP 4TH Quarter annualized (preliminary): 2.6% (exp. 3.3%)
-U.S. GDP price index: -0.1% (exp. 1.0%)
-U.S. Chicago PMI: 59.4 (exp. 57.5)
-U.S. consumer sentiment index: 98.1 (exp. 98.2)

Key Event Calendar:

DATE
CANADA
U.S.A.
 
 
 
Feb. 2
RBC manufacturing PMI
Personal income / spending, Markit mfg,
 
 
construction spending, ISM mfg PMI
Feb. 3
Raw material / Industrial prod. Price
Factory orders
Feb. 4
Ivey PMI
ADP employment change, Markit services
 
 
PMI, ISM non-mfg PMI
Feb. 5
Int’l merchandise trade
Trade balance, jobless claims
Feb. 6
Net employment change
Non-farm payrolls, unemployment rate,
 
Unemployment rate, participation
participation rate
 
rate, building permits
 

Yesterday, USDCAD traded from 1.2512 up to 1.2678 before falling back to 1.2611. The pairing climbed to 1.2677 ahead of the Canadian and U.S. GDP data releases. Both countries missed estimates and although the initial reaction sent USDCAD from 1.2653 up to 1.2799, the pairing has since fallen back towards 1.2677. Global equity markets remain volatile swinging between gains and losses and the JPY is the best performing currency reaching a 10 month high vs. the CAD. Since Dec. 7TH, 2014 – the yen has gained 15% vs. the CAD. Currently, the TSX is unchanged while the DJIA is down 0.47%. EURCAD is up 0.40% trading between 1.4280 and 1.4491. GBPCAD is up 0.35% trading between 1.9004 and 1.9276. JPYCAD is up 1.2% trading between 0.01065 and 0.01088. Gold is up 1% trading between $1,257 and $1,275USD/oz, silver is up 1.80% trading between $16.83 and $17.20USD/oz, while oil is up 2%, trading between $44.19 and $45.64.

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

 

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