VBCE Daily Foreign Exchange Update for Tuesday, Jan. 20th, 2015

USDCAD jumps from 1.1940 up to 1.2112 ahead of
tomorrow's Bank of Canada Announcement

 

 

USDCAD spot rate: 1.2075 - 1.2080 (AS AT 8:30AM PST)

RANGES:	Asia:	1.1940	to	1.1983
	Europe:	1.1952	to	1.1993
	North America:	1.1995	to	1.2112

Technical Support / Resistance:

S2	S1	R1	R2
1.1930	1.1984	1.2112	1.2200

Key Economic Data Releases:

-Canada manufacturing shipments: -1.4% (exp. -0.7%)

Key Event Calendar:

DATE	CANADA	U.S.A.
Jan. 21	Bank of Canada interest rate	Building permits, housing starts
Jan. 22		Jobless claims, housing price index
Jan. 23	CPI, retail sales	Markit mfg PMI, existing home sales

Yesterday, USDCAD traded from 1.1985 down to 1.1937, marking the 6TH consecutive day in which USDCAD failed to close above the key tech level of 1.1984. However, the inability to close below 1.1930 and generate a more sizeable correction opens the door for further CAD weakness. USDCAD reversed course last night during the Asian session climbing to 1.1983 despite better than expected China 4^th quarter GDP data. The pairing broke above 1.20 this morning as Canadian manufacturing shipments were weaker than expected and oil dropped by as much a 3% today. USDCAD broke through last week’s high of 1.2045 and has made gains to 1.2112 before easing back to 1.2070. There is speculation that the Bank of Canada may offer a dovish tone in tomorrow’s monetary policy announcement with the recent plunge in oil affecting both Canada’s trade deficit and inflation forecast. Currently, the TSX is up 1.14% while the DJIA is unchanged. EURCAD is down 1.2% trading between 1.3755 and 1.3964. GBPCAD is down 0.35% trading between 1.8090 and 1.8279. JPYCAD is down 1.15% trading between 0.01017 and 0.01033. Gold is up 1% trading between $1,255 and $1,278USD/oz, silver is up 2.53% trading between $16.90 and $17.60USD/oz, while oil is up 2.55%, trading between $45.99 and $48.79.

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

VBCE Daily Foreign Exchange Update for Thursday, Dec. 4th, 2014

USDCAD spot rate: 1.1372 - 1.1377 (AS AT 8:13AM PST)

RANGES:	Asia:	1.1351	to	1.1375
	Europe:	1.1341	to	1.1369
	North America:	1.1357	to	1.1397

Technical Support / Resistance:

S2	S1	R1	R2
1.1230	1.1315	1.1465	1.1549

Key Economic Data Releases:

-Canadian Ivey purchasing managers index: 56.9 (exp. 52.5)

-U.S. initial jobless claims: 297k (exp. 295k)

-Bank of England interest rate decision: unchanged @ 0.50%

-European Central Bank interest rate decision: unchanged @ 0.05%

Key Event Calendar:

DATE	CANADA	U.S.A.
Dec. 5	Int’l merchandise trade, employment	Trade balance
	change, Unemployment rate	Non-farm payrolls, unemployment rate

Yesterday, USDCAD traded from 1.1390 up to 1.1418 before falling to 1.1345. The pairing edged higher to hold near 1.1366 for the balance of the North American session. The main catalyst for the Canadian dollar’s strong performance yesterday was the slightly hawkish wording of Bank of Canada monetary policy statement. Overnight USDCAD dipped to 1.1341 and then climbed to 1.1397 after the ECB policy announcement which has resulted in a 2 cent gain by the EUR vs. both the CAD and USD. The ECB will wait until next year to evaluate the need for further stimulus, or to extend the purchase of asset backed securities to sovereign debt (U.S. style of quantitative easing). USCAD has since fallen to 1.1365 on broad- based USD weakness as U.S. equity markets trend lower. Tomorrow, Canada is expected to add 5,000 jobs after having added 43,100 jobs prior. The U.S. is expected to add 232,000 after having added 214,000 jobs previously. The unemployment rate in Canada is expected to tick up to 6.6% from 6.5%. The U.S. unemployment rate is expected to remain steady at 5.8%. Currently, the TSX and the DJIA are down 1.20% and 0.44% respectively. EURCAD is up 1.80% trading between 1.3957 and 1.4163. GBPCAD is up 0.50% trading between 1.7784 and 1.7887. JPYCAD is up 0.37% trading between 0.00947 and 0.00953. Gold is unchanged trading between $1,201 and $1,213USD/oz, silver is up 1% trading between $16.38 and $16.66USD/oz, while oil is down 1%, trading between $66.11 and $68.19.

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

 

Please contact the VBCE trading desk at 604-685-1008 for more information on our foreign exchange and wire payment services. Updates by stevebrown@vbce.ca 

The information contained in this report has been compiled by our VBCE traders from sources believed to be reliable, but no representation or warranty, express or implied, is made by VBCE as to its accuracy, completeness or correctness.  All opinions and estimates contained in this report constitute VBCE’s judgment as of the date of this report, are subject to change without notice and are provided in good faith but without legal responsibility.  Nothing in this report constitutes legal, accounting or tax advice or individually tailored investment advice.  This material is prepared for general circulation to clients and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it.  This report is not an offer to sell or a solicitation of an offer to buy any currency or precious metals.  Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur.  To the full extent permitted by law neither VBCE nor any other person, accepts any liability whatsoever for any direct or consequential loss arising from any use of this report or the information contained herein.  No matter contained in this document may be reproduced or copied by any means without the prior consent of VBCE.

Copyright © VBCE, All rights reserved.

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For foreign currency exchange rates, visit www.vbce.ca/rates/major-currencies
For rates on precious metals, visit www.vbce.ca/rates/precious-metals
For questions, please contact us at info@vbce.ca  or 604-685-1008.
#120-800 West Pender Street, Vancouver, BC V6C 2V6

 

VBCE Daily Foreign Exchange Update for Thursday, Nov. 20th, 2014

USDCAD spot rate: 1.1295 - 1.1300 (AS AT 8:22AM PST)

RANGES:	Asia:	1.1338	to	1.1369
	Europe:	1.1327	to	1.1369
	North America:	1.1292	to	1.1335

Technical Support / Resistance:

S2	S1	R1	R2
1.1210	1.1265	1.1370	1.1440

Key Economic Data Releases:

-Canada wholesale sales: 1.8% (exp. 0.8%)

-U.S. consumer price index m/m: 0.0% (exp. -0.1%) y/y: 1.7% (exp. 1.6%)

- U.S. CPI ex food & energy m/m: 0.2% (exp. 0.1%) y/y: 1.8% (exp. 1.7%)

-U.S. initial jobless claims: 291k (exp. 285k)

-U.S. Markit Manufacturing: 54.7 (exp. 56.4)

-U.S. leading indicators: 0.9 (exp. 0.6)

-U.S. existing home sales: 5.26 million (exp. 5.16 million) % change: 1.5% (exp. 0.0%)

-U.S. Philly Fed manufacturing survey: 40.8 (exp. 18.3)

Key Event Calendar:

DATE	CANADA	U.S.A.
Nov. 21	Consumer price index

Yesterday, USDCAD traded from 1.1295 up to 1.1356 ahead of the 11:00am release of the U.S. Fed minutes. There was concern about low inflation and the USD subsequently weakened across the board taking USDCAD down to 1.1304. The pairing bounced back towards 1.1340 and continued to trade between 1.1310 and 1.1340 for about 30 minutes before finally breaking higher to 1.1360 as the USD broadly gained. The pairing made marginal gains overnight to 1.1369 before falling back to 1.1327. USDCAD opened this morning at 1.1335, dropped to 1.1292, and has since bounced to 1.1314 as the CAD is the best preforming currency this morning on better than expected Canadian wholesale sales data and flat U.S. inflation data. USDJPY made new highs up to 118.98 before correcting lower to 117.74 after the U.S. data releases. Tomorrow, Canadian CPI is expected to tick up from 2.0% to 2.1% (Core 2.1% to 2.2. Currently, the TSX and the DJIA are up 0.29% and 0.06% respectively. EURCAD is down 0.50% trading between 1.4168 and 1.4266. GBPCAD is down 0.20% trading between 1.7743 and 1.7805. JPYCAD is down 0.40% trading between 0.00955 and 0.00961. Gold is up 0.70% trading between $1,177 and $1,197USD/oz, silver is unchanged trading between $15.99 and $16.34USD/oz, while oil is up 0.70%, trading between $74.23 and $75.51.

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

 

 

Please contact the VBCE trading desk at 604-685-1008 for more information on our foreign exchange and wire payment services. Updates by stevebrown@vbce.ca 

The information contained in this report has been compiled by our VBCE traders from sources believed to be reliable, but no representation or warranty, express or implied, is made by VBCE as to its accuracy, completeness or correctness.  All opinions and estimates contained in this report constitute VBCE’s judgment as of the date of this report, are subject to change without notice and are provided in good faith but without legal responsibility.  Nothing in this report constitutes legal, accounting or tax advice or individually tailored investment advice.  This material is prepared for general circulation to clients and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it.  This report is not an offer to sell or a solicitation of an offer to buy any currency or precious metals.  Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur.  To the full extent permitted by law neither VBCE nor any other person, accepts any liability whatsoever for any direct or consequential loss arising from any use of this report or the information contained herein.  No matter contained in this document may be reproduced or copied by any means without the prior consent of VBCE.

Copyright © VBCE, All rights reserved.

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For foreign currency exchange rates, visit www.vbce.ca/rates/major-currencies
For rates on precious metals, visit www.vbce.ca/rates/precious-metals
For questions, please contact us at info@vbce.ca  or 604-685-1008.
#120-800 West Pender Street, Vancouver, BC V6C 2V6

VBCE Daily Foreign Exchange Update for Friday, Nov. 14th, 2014

USDCAD spot rate: 1.1315 - 1.1320 (AS AT 8:05AM PST)

RANGES:	Asia:	1.1366	to	1.1394
	Europe:	1.1357	to	1.1387
	North America:	1.1307	to	1.1385

Technical Support / Resistance:

S2	S1	R1	R2
1.1210	1.1280	1.1400	1.1440

Key Economic Data Releases:

-Canadian manufacturing shipments: 2.1% (exp. 1.1%)

- U.S. retail sales: 0.3% (exp. 0.2%) ex autos: 0.3% (exp. 0.2%)

-U.S. consumer sentiment index: 89.4 (exp. 87.5)

-U.S. business inventories: 0.3% (exp. 0.2%)

Key Event Calendar:

DATE	CANADA	U.S.A.
Nov. 17	Net securities transactions	NY Empire state mfg index, industrial production
Nov. 18		Producer price index, net long-term TIC flows
Nov. 19		Building permits, housing starts, FOMC minutes
Nov. 20	Wholesale sales	CPI, jobless claims, Markit mfg PMI, existing
		home sales, Phil.Fed mfg survey, leading indicator
Nov. 21	Consumer price index

Yesterday, USDCAD trended higher trading from 1.1299 up to 1.1390 as the price of oil dropped more than 2% falling below the $75 level. Overnight, USDCAD made marginal gains to 1.1394 before dropping to 1.1357. The pairing bounced briefly to 1.1385 this morning but has since fallen sharply to 1.1307. The CAD is the best performing currency today on better than expected manufacturing data and a rebound in commodity prices. A minor bounce to 1.1325 has been followed by another move lower to 1.1293 just moments ago. Currently, the TSX and the DJIA are relatively unchanged. EURCAD is down 0.50% trading between 1.4200 and 1.4079. GBPCAD is down 1% trading between 1.7877 and 1.7684. JPYCAD is down 1% trading between 0.00983 and 0.00972. Gold is up 0.60% trading between $1,147 and $1,180USD/oz, silver is up 1.15% trading between $15.29 and $15.98USD/oz, while oil is up 1.50%, trading between $73.29 and $75.39.Sources: Reuters, Bloomberg, FXStreet, RBC Capital Markets, Bank of Canada, U.S. Federal Reserve, CNBC, Forexlive

Please contact the VBCE trading desk at 604-685-1008 for more information on our foreign exchange and wire payment services. Updates by stevebrown@vbce.ca 

The information contained in this report has been compiled by our VBCE traders from sources believed to be reliable, but no representation or warranty, express or implied, is made by VBCE as to its accuracy, completeness or correctness.  All opinions and estimates contained in this report constitute VBCE’s judgment as of the date of this report, are subject to change without notice and are provided in good faith but without legal responsibility.  Nothing in this report constitutes legal, accounting or tax advice or individually tailored investment advice.  This material is prepared for general circulation to clients and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it.  This report is not an offer to sell or a solicitation of an offer to buy any currency or precious metals.  Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur.  To the full extent permitted by law neither VBCE nor any other person, accepts any liability whatsoever for any direct or consequential loss arising from any use of this report or the information contained herein.  No matter contained in this document may be reproduced or copied by any means without the prior consent of VBCE.

Copyright © VBCE, All rights reserved.

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For foreign currency exchange rates, visit www.vbce.ca/rates/major-currencies
For rates on precious metals, visit www.vbce.ca/rates/precious-metals
For questions, please contact us at info@vbce.ca  or 604-685-1008.
#120-800 West Pender Street, Vancouver, BC V6C 2V6