VBCE Daily Foreign Exchange Update for Tuesday, Oct. 28th, 2014

USDCAD spot rate: 1.1170 - 1.1175 (AS AT 8:25AM PST)

RANGES:	Asia:	1.1234	to	1.1253
	Europe:	1.1217	to	1.1247
	North America:	1.1166	to	1.1219

Technical Support / Resistance:

S2	S1	R1	R2
1.1070	1.1166	1.1294	1.1360

Key Economic Data Releases:

-U.S. durable goods orders: -1.3% (exp. 0.5%) ex transportation: -0.2% (exp. 0.5%)

-U.S. consumer confidence: 94.5 (exp. 87.0)

-U.S. Case Shiller home price indices: 5.6% (exp. 5.8%)

-U.S. Richmond Fed manufacturing index: 20 (prev. 14)

Key Event Calendar:

DATE	CANADA	U.S.A.
Oct. 29	Raw mat. / indust. product price index	Fed interest rate decision
Oct. 30		GDP Q3, Core PCE, jobless claims
Oct. 31	GDP	Core PCE price index, personal income /
		spending, consumer sentiment index

Yesterday, USDCAD traded from 1.1240 down to 1.1214 and then climbed to 1.1255 after Goldman Sachs reduced its oil price forecast for 2015 sending WTI oil down to $79.48, one of the lowest levels in the past two and a half years. USDCAD dipped to 1.1225 but climbed back to hold near 1.1240/50 for the balance of the session. The CAD was the worst performing currency yesterday but is the best performing currency this morning. Overnight oil remained above the $80 level and extended gains to $81.64. The USD broadly weakened sending USDCAD down to 1.1217. U.S. durable goods orders were poor and although the consumer confidence reached a 7 year high, the USD sell-off has continued this morning. USDCAD has broken below 1.1200 reaching a 3 week low of 1.1166 thus far. The market could be taking profit on long USD positions going into tomorrow’s U.S. Fed interest rate announcement / policy meeting where it is widely expected that the QE3 stimulus program will officially come to an end. Currently, the TSX and the DJIA are up 0.50% and 0.40% respectively. EURCAD is down 0.30% trading between 1.4225 and 1.4304. GBPCAD is down 0.50% trading between 1.8052 and 1.8142. JPYCAD is down 0.85% trading between 0.01034 and 0.01043. Gold is up 0.10% trading at $1,230USD/oz, silver up 0.40% trading at $17.23USD/oz, while oil is up 0.26%, trading at $81.21.

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

Please contact the VBCE trading desk at 604-685-1016 for more information on our corporate foreign exchange and wire payment services. Updates by stevebrown@vbce.ca

 

VBCE Daily Foreign Exchange Update for Monday, Oct. 27th, 2014

USDCAD spot rate: 1.1228 - 1.1233 (AS AT 8:15AM PST)

RANGES:	Asia:	1.1214	to	1.1240
	Europe:	1.1217	to	1.1241
	North America:	1.1225	to	1.1255

Technical Support / Resistance:

S2	S1	R1	R2
1.1070	1.1185	1.1294	1.1360

Key Economic Data Releases:

-U.S. Markit service PMI: 57.3 (exp. 58.0)

-U.S. pending home sales: 0.3% (exp. 0.5%)

Key Event Calendar:

DATE	CANADA	U.S.A.
Oct. 28		Durable goods, consumer confidence
Oct. 29	Raw mat. / indust. product price index	Fed interest rate decision
Oct. 30		GDP Q3, Core PCE, jobless claims
Oct. 31	GDP	Core PCE price index, personal income /
		spending, consumer sentiment index

On Friday, USDCAD traded from 1.1233 down to 1.1195 only to climb back and close the week near intra- day highs at 1.1241. Over the weekend, the results of the European bank stress tests were better than expected. Several Asian indices climbed higher while the EURO gained and USDCAD eased from 1.1240 down to 1.1214. Goldman Sachs reduced its oil price forecast for 2015 earlier this morning sending WTI from $81.24 down to $79.48, one of the lowest levels in the past two and a half years. USDCAD climbed from an overnight low of 1.1214 up to 1.1255. U.S. data this morning missed estimates while oil prices have recovered climbing back above $80 to $80.60. USDCAD has fallen from 1.1255 to 1.1225 accordingly where it has found support and since bounced to 1.1235. Currently, the TSX is down 0.72% while the DJIA is up 0.11%. EURCAD is up 0.30% trading between 1.4227 and 1.4285. GBPCAD is up 0.30% trading between 1.8058 and 1.8137. JPYCAD is up 0.30% trading between 0.01037 and 0.01043. Gold is down 0.21% trading at $1,229USD/oz, silver down 0.19% trading at $17.15USD/oz, while oil is down 1.14%, trading at $80.10.

 

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

Please contact the VBCE trading desk at 604-685-1016 for more information on our corporate foreign exchange and wire payment services. Updates by stevebrown@vbce.ca

VBCE Daily Foreign Exchange Update for Friday, Oct. 24th, 2014

USDCAD spot rate: 1.1220 - 1.1225 (AS AT 8:07AM PST)

RANGES:	Asia:	1.1215	to	1.1233
	Europe:	1.1212	to	1.1234
	North America:	1.1194	to	1.1235

Technical Support / Resistance:

S2	S1	R1	R2
1.1070	1.1185	1.1294	1.1360

Key Economic Data Releases:

-U.S. new home sales: 467,000 (exp. 470,000)

Key Event Calendar:

DATE	CANADA	U.S.A.
Oct. 27		Markit services, pending home sales
Oct. 28		Durable goods, consumer confidence
Oct. 29	Raw mat. / indust. product price index	Fed interest rate decision
Oct. 30		GDP Q3, Core PCE, jobless claims
Oct. 31	GDP	Core PCE price index, personal income /
		spending, consumer sentiment index

Yesterday, USDCAD climbed from 1.1232 up to 1.1263 and then fell back to 1.1207. The move lower was short-lived and the pairing bounced back towards 1.1245 and remained confined to a 1.1230 – 1.1245 range for the balance of the day. In the absence of any key economic data today, the trading range has remained narrow. USDCAD held a 1.1212 – 1.1234 range overnight with similar narrow ranges amongst other currency pairings. USDCAD opened this morning’s session at 1.1213, dipped to 1.1193, and then bounced to test intra-day highs at 1.1235. This move higher was short-lived with the pairing easing back down to 1.1220. Equity markets are marginally higher although oil has fallen back into the $80 range. Currently, the TSX and the DJIA are up 0.05% and 0.25% respectively. EURCAD is up 0.25% trading between 1.4174 and 1.4237. GBPCAD is up 0.25% trading between 1.7968 and 1.8062. JPYCAD is unchanged trading between 0.01036 and 0.01041. Gold is up 0.30% trading at $1,233USD/oz, silver up 1% trading at $17.31USD/oz, while oil is down 2%, trading at $80.51.

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

 

Please contact the VBCE trading desk at 604-685-1016 for more information on our corporate foreign exchange and wire payment services. Updates by stevebrown@vbce.ca

 

VBCE Daily Foreign Exchange Update for Thursday, Oct. 23rd, 2014

USDCAD spot rate: 1.1240 - 1.1245 (AS AT 8:15AM PST)

RANGES:	Asia:	1.1232	to	1.1263
	Europe:	1.1232	to	1.1263
	North America:	1.1207	to	1.1255

Technical Support / Resistance:

S2	S1	R1	R2
1.1070	1.1185	1.1294	1.1360

Key Economic Data Releases:

-U.S. initial jobless claims: 283,000 (exp. 282,000)

-U.S. housing price index: 0.5% (prev. 0.2%)

-U.S. Markit manufacturing PMI: 56.2 (exp. 57.0)

-U.S. leading indicator: 0.8% (exp. 0.6%)

Key Event Calendar:

DATE	CANADA	U.S.A.
Oct. 24		New home sales
Oct. 27		Markit services, pending home sales
Oct. 28		Durable goods, consumer confidence
Oct. 29	Raw mat. / indust. product price index	Fed interest rate decision
Oct. 30		GDP Q3, Core PCE, jobless claims
Oct. 31	GDP	Core PCE price index, personal income /
		spending, consumer sentiment index

Yesterday, USDCAD was volatile initially trading from 1.1216 up to 1.1292 only to plunge to 1.1185/90 after the 7:00am Bank of Canada monetary policy statement. The pairing held a 1.1205 – 1.1240 range for a few hours and then remained near 1.1240 as North American equity markets turned lower with losses accelerating late in the day. Overnight, USDCAD climbed to 1.1263 and opened this morning’s session at 1.1247. A quick move down to 1.1207 has been followed by a return to opening levels at 1.1247. Equity markets have reversed yesterday’s losses while oil is up nearly $2 on reports that Saudi Arabia will reduce its oil supply. The Japanese yen is the worst performing currency with JPYCAD near a 2 week low, down nearly 3.5% from early last week’s 6 month high. (Spike high during the volatile market sell-off) Currently, the TSX and the DJIA are up 1.05% and 1.60% respectively. EURCAD is unchanged trading between 1.4192 and 1.4252. GBPCAD is unchanged trading between 1.7960 and 1.8075. JPYCAD is down 0.85% trading between 0.01040 and 0.01050. Gold is down 1.40% trading at $1,228USD/oz, silver down 0.41% trading at $17.16USD/oz, while oil is up 1.50%, trading at $81.80.

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

Please contact the VBCE trading desk at 604-685-1016 for more information on our corporate foreign exchange and wire payment services. Updates by stevebrown@vbce.ca