Daily foreign exchange rates for our top 10 currencies & Update #forex #Vancouver December 5, 2019


VBCE Daily Foreign Exchange Update for Thursday, Dec. 5, 2019

USDCAD spot rate: 1.3170 - 1.3175 (as at 10:10am PST)

Ranges:

Asia:

1.3180

to

1.3204

Europe:

1.3175

to

1.3193

North America:

1.3159

to

1.3187

Technical Support / Resistance:

S2

S1

R1

R2

1.3130

1.3160

1.3210

1.3300

Key Economic Data Releases:

- Canada Int'l merchandise trade: -$1.08 billion (exp -$1.37 billion / prev -$1.23 billion)

- Canada Ivey purchasing managers index (PMI): 60 (exp 53.8 / prev 48.2)

- U.S. trade balance: -$47.2 billion (exp -$48.7 billion / prev -$51.1 billion)

Event Calendar:

Date

Canada

U.S.A.

Dec. 2

Dec. 3

Dec. 4

Dec. 5

Dec. 6

Markit mfg. PMI

Bank of Canada interest rate

Int'l merchandise trade, Ivey PMI

Net employment change, unemployment rate, wage inflation

Markit / ISM mfg. PMI

ADP employment, ISM non-mfg PMI

Trade balance

Non-farm payrolls, unemployment rate, wage inflation

Yesterday, USDCAD dropped from 1.3300 down to 1.3185 as the Bank of Canada held its key interest rate at 1.75% and did not hint at a possible rate cut for January. The USDCAD had been trading near a 2 month high prior to the statement and ended the session near a 1 month low. The BOC's tone was firmly neutral if not a touch hawkish. Also, oil prices surged higher completely erasing last Friday's 5% sell-off. Overnight, BOC member Lane commented that there was "no reason for the Bank of Canada to move in step with the U.S. Federal Reserve." The U.S. Fed has cut interest rates 3 times this year while the BOC has held steady – Canada has the highest interest rate of the G7 countries. USDCAD has moved lower to 1.3159 before climbing back to 1.3185. The market now awaits the Canadian and U.S. jobs reports due out at 5:30am tomorrow. Currently, the TSX and the DJIA are down 0.44% and 0.15% respectively. EURCAD is unchanged trading between 1.4598 and 1.4637 – near 1 month lows after trading near 3 month highs on Dec. 3rd. GBPCAD is up 0.30% trading between 1.7276 and 1.7349 – near 7 month highs. JPYCAD is unchanged trading between 0.01208 and 0.01213 – near 1 month lows. Gold is up 0.30% trading between $1,472 and $1,480USD/oz while silver is up 0.88% trading between $16.81 and $17.01. Oil (WTI crude) is unchanged trading between $58.17 and $59.18 – near 10 week highs.

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The information and opinions contained herein are gathered from sources which are thought to be reliable but the reader should not assume that the information and opinions are official or final. VBCE makes no warranty concerning the accuracy of the information and opinions, and accepts no liability for the consequences of any actions taken on the basis of the information and opinions provided. The content is for general information only and does not constitute in anyway giving financial advice.