Monday, January 12, 2015

USDCAD breaks above 1.1900 / posts new 5.5 year high

 
 
VBCE Daily Foreign Exchange Update for Monday, Jan. 12th, 2015
USDCAD spot rate: 1.1923 - 1.1928 (AS AT 8:07AM PST)

RANGES:
Asia:
1.1836
to
1.1865
 
Europe:
1.1840
to
1.1886
 
North America:
1.1878
to
1.1938

Technical Support / Resistance:

S2
S1
R1
R2
1.1671
1.1800
1.1984
1.2200

Key Economic Data Releases:
-U.S. labour market conditions index: 6.1 (prev. 5.5)

Key Event Calendar:

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

On Friday, USDCAD traded from 1.1805 up to 1.1890 before easing to close the week at 1.1866. The USD and the CAD were the worst preforming currencies on Friday. Although the U.S. added more jobs than expected including a large revision to November’s data, many of the jobs were of the lower paying / part-time quality. On the other hand, Canada added 53,300 full time jobs while losing 57,700 part time jobs. Overnight during the Asian session, USDCAD eased lower to 1.1836 on broad-based USD weakness. The pairing reversed course testing Friday’s post-employment data high during the London session. With oil losing nearly another 5% today, USDCAD has broken above 1.1900 and has made gains to 1.1940, its highest level in 5.5 years. Currently, the TSX and the DJIA are down 1.34% and 0.25% respectively. EURCAD is up 0.35% trading between 1.4004 and 1.4116. GBPCAD is up 0.50% trading between 1.7925 and 1.8080. JPYCAD is up 0.45% trading between 0.00996 and 0.01007. Gold is up 1% trading between $1,217 and $1,231USD/oz, silver is up 0.71% trading between $16.43 and $16.68USD/oz, while oil is down nearly 5%, trading between $45.93 and $48.24.
Sources: Reuters, Bloomberg, FXStreet, RBC Capital Markets, Bank of Canada, U.S. Federal Reserve, CNBC, Forexlive

 



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