VBCE Daily Foreign Exchange Update for Wednesday, Apr. 22nd, 2015
Ranges:
Asia
|
1.2252
to 1.2287
|
Europe
|
1.2208
to 1.2257
|
North
America
|
1.2225
to 1.2260
|
Technical Support /
Resistance:
S2
|
S1
|
R1
|
R2
|
1.2090
|
1.2180
|
1.2280
|
1.2350
|
Key Economic Data Releases:
-EIA crude oil stocks change: 5.3 million barrels (exp. 2.7 million barrels)
Date
|
Canada
|
U.S.A.
|
Apr. 23
Apr. 24
|
Jobless claims, Markit mfg., new home sales
Durable goods orders
|
Yesterday, USDCAD climbed from 1.2225 up to 1.2280 (resistance area) during the London session before falling back to 1.2212 in early North American trading. The pairing then briefly broke above 1.2280 extending gains to 1.2297. Trade above the 1.2280 level could not be sustained and USDCAD
fell
back to 1.2250. A third attempt was successful as USDCAD briefly touched 1.2305 but the pairing drifted back towards 1.2280 late in the
N.A.
session.
Overnight, USDCAD dropped to 1.2208 on general
USD weakness. The
pairing bounced to 1.2255 and has remained range-bound between 1.2225 – 1.2260 in the
absence of any key data. After holding a 1.2350 – 1.2835 range for much of the first quarter of 2015, the market appears
to have shifted its sentiment towards USDCAD from bullish
to bearish. The main catalysts were the Bank of Canada affirming a neutral interest rate policy, higher oil, and recent weaker U.S. data suggesting that U.S. rate hikes may be fewer and far between. Previous strong support at 1.2350 should cap rallies in USDCAD
for a
test of 1.20 this quarter.
Currently, the TSX is down 0.60% while the DJIA is up 0.29%. EURCAD
is down 0.20% trading
between 1.3118 and 1.3201. GBPCAD is up 0.70%, trading between 1.8281
and 1.8465. JPYCAD is down 0.40% trading between 0.01021 and 0.01026. Gold is down 1.28% trading between $1,186
and
$1,205USD/oz.,
silver is down 2% trading
between $15.71 and $16.12USD/oz.,
while oil is up 0.50% trading between $55.72
and $57.16.
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