Monday, March 9, 2015

VBCE Daily Foreign Exchange Update for Monday, Mar 9th, 2015



USDCAD eases from 1.2625 down to 1.2574 as oil regains the $50 level

USDCAD spot rate: 1.2585 - 1.2590 (AS AT 8:15AM PST)

RANGES:
Asia:
1.2597
to
1.2625
 
Europe:
1.2574
to
1.2608
 
North America:
1.2574
to
1.2597

Technical Support / Resistance:

S2
S1
R1
R2
1.2350
1.2400
1.2625
1.2660

Key Economic Data Releases:
-Canada housing starts: 156.3k (exp. 179.0k)
-U.S. labour market conditions index: 4.0 (prev. 4.9)

Key Event Calendar:

DATE
CANADA
U.S.A.
 
 
 
Mar. 10
 
Wholesale inventories
Mar. 11
 
EIA crude oil stock change
Mar. 12
New housing price index
Retail sales, jobless claims, bus. Inventories
Mar. 13
Net employment change
Producer price index, consumer sentiment

On Friday, USDCAD traded from 1.2496 down to 1.2456 ahead of the U.S. employment data release. The headline numbers were strong with 295,000 jobs added and a fall in the unemployment rate from 5.7% to 5.5%. The USD made gains across the board taking USDCAD up to 1.2625, effectively wiping away the CAD gains earlier in the week from the strong GDP data and the surprise neutral tone from the Bank of Canada (USDCAD had fallen from 1.2560 down to 1.2407). USDCAD closed the week near session highs, with the only pull-back coming earlier in the day to 1.2570. Overnight, USDCAD failed to add to its gains above 1.2625 and eased lower to 1.2574. The pairing has remained idle this morning holding in a 1.2574 – 1.2597 range. On Friday, Canada is expected to show a decline of 5,000 jobs in February after posting a strong January (+35,400). The unemployment rate is expected to tick up to 6.7% from 6.6%. Currently, the TSX is unchanged while the DJIA is up 0.54%. EURCAD is down 0.10% trading between 1.3654 and 1.3736. GBPCAD is up 0.25% trading between 1.8961 and 1.9044. JPYCAD is down 0.40% trading between 0.01040 and 0.01045. Gold is up 0.53% trading between $1,167 and $1,175USD/oz, silver is unchanged trading between $15.75 and $15.98USD/oz, while oil is up 1.51% trading between $49.28 and $50.76.

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


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