USDCAD spot rate: 1.2425 - 1.2430 (AS AT 8:30AM PST)
RANGES:
|
Asia:
|
1.2481
|
to
|
1.2507
|
Europe:
|
1.2493
|
to
|
1.2534
|
|
North America:
|
1.2421
|
to
|
1.2544
|
Technical Support / Resistance:
S2
|
S1
|
R1
|
R2
|
1.2350
|
1.2430
|
1.2565
|
1.2660
|
Key Economic Data Releases:
-Bank of Canada interest rate announcement:
unchanged at 0.75%
http://www.bankofcanada.ca/2015/03/fad-press-release-2015-03-04/
http://www.bankofcanada.ca/2015/03/fad-press-release-2015-03-04/
-U.S. ADP employment change: 212k (exp. 220k)
-U.S. Markit services PMI: 57.1 (exp. 54.8)
-U.S. ISM non-manufacturing
index: 56.9 (exp. 56.5)
Key Event Calendar:
DATE
|
CANADA
|
U.S.A.
|
Mar. 5
|
Ivey purchasing managers index
|
Jobless claims, factory orders
|
Mar. 6
|
Building permits, Int’l merchandise
|
Non-farm payrolls, unemployment rate, trade
|
trade
|
balance
|
Yesterday, USDCAD traded from 1.2543 down to 1.2432 before
climbing to 1.2495 late in the North American session. Canadian 4TH quarter GDP was much stronger than
expected including a 0.4% upward revision to 3RD quarter GDP. Just prior to the Bank of Canada announcement
at 7:00am this morning, USDCAD climbed to 1.2544 despite oil prices approaching
$51.
The Bank kept its key rate unchanged as was widely expected but the tone of the statement was neutral rather than dovish. “The Bank continues to expect that most of the negative impact from lower oil prices will appear in the first half of 2015, although it may be even more front-loaded than projected in January.” USDCAD has fallen to 1.2421/26 thus far while EURCAD has fallen more than two cents to 1.3750, its lowest level in almost 1 year. Despite oil inventories coming in at +10.3 million barrels vs exp. 4.0 million barrels which sent oil from $51 down to $49.61, the CAD continues to be the best performing currency today. On Friday, the U.S. is expected to add 240,000 new jobs, down from 257,000 the previous month.
The unemployment rate is expected to fall from 5.7% to 5.6%. Currently, the TSX and the DJIA are down 0.69% and 0.61% respectively. EURCAD is down 1.50% trading between 1.3760 and 1.3978. GBPCAD is down 1.50% trading between 1.8972 and 1.9232. JPYCAD is down 0.47% trading between 0.01038 and 0.01048. Gold is down 0.22% trading between $1,198 and $1,209USD/oz, silver is down 0.83% trading between $16.09 and $16.38USD/oz, while oil is down 1.37%, trading between $49.61 and $51.14.
The Bank kept its key rate unchanged as was widely expected but the tone of the statement was neutral rather than dovish. “The Bank continues to expect that most of the negative impact from lower oil prices will appear in the first half of 2015, although it may be even more front-loaded than projected in January.” USDCAD has fallen to 1.2421/26 thus far while EURCAD has fallen more than two cents to 1.3750, its lowest level in almost 1 year. Despite oil inventories coming in at +10.3 million barrels vs exp. 4.0 million barrels which sent oil from $51 down to $49.61, the CAD continues to be the best performing currency today. On Friday, the U.S. is expected to add 240,000 new jobs, down from 257,000 the previous month.
The unemployment rate is expected to fall from 5.7% to 5.6%. Currently, the TSX and the DJIA are down 0.69% and 0.61% respectively. EURCAD is down 1.50% trading between 1.3760 and 1.3978. GBPCAD is down 1.50% trading between 1.8972 and 1.9232. JPYCAD is down 0.47% trading between 0.01038 and 0.01048. Gold is down 0.22% trading between $1,198 and $1,209USD/oz, silver is down 0.83% trading between $16.09 and $16.38USD/oz, while oil is down 1.37%, trading between $49.61 and $51.14.
Sources: Reuters, Bloomberg, FXStreet,
RBC Capital Markets, Bank of Canada, U.S. Federal Reserve, CNBC, Forexlive
