VBCE Daily Foreign Exchange Update for Thursday, July 2nd 2015

D spot rate: 1.2560 - 1.2565 (AS AT 8:49AM PST)

Ranges:
Asia

RANGES:	Asia:	1.2579	to	1.2597
	Europe:	1.2585	to	1.2633
	North America:	1.2558	to	1.2620

Technical Support / Resistance:

S2	S1	R1	R2
1.2450	1.2500	1.2633	102715

Key Economic Data Releases:

-Canada RBC manufacturing PMI: 51.3 (prev. 49.8)

-U.S. Non-farm payrolls: 223,000 (exp. 230,000)
-U.S. unemployment rate: 5.3% (exp. 5.4%)
-U.S. labour force participation rate: 62.6% (prev. 62.9%)
-U.S. Average hourly earnings y/y: 2.0% (exp. 2.3%)
-U.S. factory orders: -1.0% (exp. -0.5%)

Key Event Calendar:

Date Canada USD     July 3rd       Markit  Services PMI

Yesterday, USDCAD climbed higher in holiday trading as oil declined by 4%. USDCAD traded from 1.2475 up to 1.2595 with almost no correction / pull-back. The pairing continued higher overnight reaching a 3 month high of 1.2633 before easing back to 1.2600 ahead of the 5:30am U.S. employment data. The report was weaker than expected and included a negative revision of 60,000 jobs to prior data. Initially, USDCAD jumped to 1.2620 as the headline unemployment rate declined to 5.3%. Once the market digested the fact that the participation rate was 0.3% lower and there was no wage growth, USDCAD dropped to 1.2558 on broad-based USD weakness. USDCAD subsequently bounced to 1.2603 before falling back to 1.2560. Currently, the TSX is up 0.35% while the DJIA is down 0.30%. EURCAD is up 0.25% trading between 1.3894 and 1.4000. GBPCAD is down 0.15%, trading between 1.9600 and 1.9724. JPYCAD is unchanged trading between 0.01020 and 0.01023. Gold is down 0.52% trading between $1,157 and $1,169USD/oz., silver is unchanged trading between $15.51 and $15.80USD/oz., while oil is up 1.25% trading between $56.81 and $57.92.

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