VBCE Daily Foreign Exchange Update for Tuesday, Feb. 17th, 2015

USDCAD retests February low of 1.2363 before rebounding to 1.2443 as oil slides

USDCAD spot rate: 1.2420 - 1.2425 (AS AT 8:12AM PST)

RANGES:	Asia:	1.2441	to	1.2480
	Europe:	1.2363	to	1.2449
	North America:	1.2375	to	1.2443

Technical Support / Resistance:

S2	S1	R1	R2
1.2265	1.2380	1.2535	1.2658

Key Economic Data Releases:

-Canadian portfolio investment in foreign securities: $13.89 billion (prev. $1.83 billion)

-Foreign investment in Canadian securities: -$13.55 billion (prev. $4.30 billion)

-Canadian existing home sales: -3.1% (prev. -5.8%)

-U.S. NY Empire state manufacturing index: 7.78 (exp. 8.50)

Key Event Calendar:

DATE	CANADA	U.S.A.
Feb. 18	Wholesale sales	Building permits, housing starts, producer
		price index, industrial production
Feb. 19		Jobless claims, leading indicators,
		Philadelphia Fed manufacturing survey
Feb. 20	Retail sales	Markit manufacturing PMI

Yesterday, USDCAD traded from 1.2458 down to 1.2427 before turning higher during the North American session. With much of Canada and the U.S. on holiday, USDCAD remained confined to a 1.2460 / 80 range for much of the North American session. The down-trend from last week resumed once today’s Asian session got under way. The pairing broke below 1.2430 support overnight and continued lower towards 1.2363, just shy of the 1.2353 low from February 3RD. Oil quickly erased its gains falling from $53.54 down to $50.84 sending USDCAD back to 1.2443. Oil has since recovered to $51.72 with USDCAD tracking closely with a move back to 1.2405. Currently, the TSX is up 0.09% while the DJIA is down 0.18%. EURCAD is unchanged trading between 1.4096 and 1.4175. GBPCAD is down 0.50% trading between 1.8989 and 1.9161. JPYCAD is down 1% trading between 0.01041 and 0.01054. Gold is down 1.60% trading between $1,204 and $1,234USD/oz, silver is down 5% trading between $16.31 and $17.34USD/oz, while oil is down 2.8%, trading between $50.84 and $53.54.

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