USDCAD falls from 1.2535 to 1.2430 as EURUSD surges 3 cents on Greece optimism

VBCE Daily Foreign Exchange Update for Tuesday, June 2, 2015

USDCAD spot rate: 1.2435 - 1.2440 (AS AT 8:45AM PST)

RANGES:	Asia:	1.2503	to	1.2535
	Europe:	1.2492	to	1.2531
	North America:	1.2430	to	1.2521

Technical Support / Resistance:

S2	S1	R1	R2
1.2305	1.2410	1.2560	1.2665

Key Economic Data Releases:

- U.S. factory orders: -0.4% (exp. 0.0%)

Key Event Calendar:

DATE	CANADA	U.S.A.
June 3	Int’l merchandise trade	ADP employment change, trade balance
June 4	Ivey PMI	Jobless claims
June 5	Net employment change	Non-farm payrolls, unemployment rate
	Unemployment rate

Yesterday, USDCAD climbed from 1.2439 up to 1.2563 with pull-backs limited to 1.2515. After the 3RD consecutive day of trading above the 1.25 level, USDCAD managed to close the session above 1.2500 near 1.2535. Canadian manufacturing data was better than expected and oil traded over $60 but general USD strength prevailed after the U.S. ISM manufacturing data was better than expected. Overnight, USDCAD remained confined to a 1.2492 – 1.2535 range. The USD began to broadly weaken on market optimism that Greece would avoid default on its loans. Eurozone inflation was also higher than expected sending the EURO 3 cents higher vs. the USD. The ensuing USD weakness has taken USDCAD down to 1.2430. A brief bounce to 1.2473 has been followed by a return to 1.2430. On Friday, Canada is expected to add 10,000 new jobs after nearly 20,000 job losses the prior month. The unemployment rate should hold steady at 6.8%. The U.S. is expected to add 225,000 jobs after additions of 223,000 prior. The unemployment rate is expected to remain unchanged at 5.4%. Currently, the TSX is up 0.34% while the DJIA is down 0.15%. EURCAD is up 1.30% trading between 1.3663 and 1.3916. GBPCAD is up 0.20%, trading between 1.8989 and 1.9122. JPYCAD is down 0.20% trading between 0.01001 and 0.01004. Gold is up 0.25% trading between $1,186 and $1,196USD/oz., silver is up 0.40% trading between $16.65 and $16.86USD/oz., while oil is up 1.10% trading between $60.11 and $61.20.