Wednesday, April 22, 2015


VBCE Daily Foreign Exchange Update for Wednesday, Apr. 22nd, 2015

 
USDCAD spot rate: 1.2245  - 1.2250 (as at 8:00am PST)

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:
  -U.S. existing home sales m/m: 5.19 million (exp. 5.03 million) % change: 6.1% (exp. 3.0%)
  -EIA crude oil stocks change: 5.3 million barrels (exp. 2.7 million barrels)

 
Key Event Calendar:

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.

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

 

0 comments

Post a Comment