Daily foreign exchange rates for our top 10 currencies & Update #forex #Vancouver January 11, 2021


VBCE Daily Foreign Exchange Update for Monday, Jan. 11, 2021

USDCAD spot rate: 1.2792 - 1.2797 (as at 8:20am PST)

Ranges:

Asia:

1.2719

to

1.2766

Europe:

1.2741

To

1.2835

North America:

1.2790

to

1.2835

Technical Support / Resistance:

S2

S1

R1

R2

1.2630

1.2694

1.2819

1.2870

Key Economic Data Releases:

- Bank of Canada business outlook survey

Event Calendar:

Date

Canada

U.S.A.

Jan. 12

Jan. 13

Jan. 14

Jan. 15

CPI

Retail sales, initial jobless claims

Industrial production, consumer sentiment

The USD/CAD pair caught some aggressive bids during the early North American session and shot to fresh two-week tops, around the 1.2835 region in the last hour. A combination of supporting factors assisted the pair to gain strong positive traction on the first day of a new trading week and move away from multi-year lows, around the 1.2630 region set last week. The USD remained well supported by the recent strong rally in the US Treasury bond yields, triggered by the increasing likelihood of additional US fiscal stimulus measures. Investors started pricing in the prospects for a more aggressive US fiscal spending in 2021 following the Democratic sweep in the US Senate runoff elections in the state of Georgia. Expectations of a larger government borrowing pushed the yield on the benchmark 10-year government bond to the highest level since March and continued benefitting the greenback. Apart from this, concerns about the continuous surge in new coronavirus cases and the imposition of strict lockdown restrictions in Europe/China tempered the recent optimism. This, in turn, dented investors' appetite for perceived riskier assets and led to a sharp pullback in the equity markets, which provided an additional boost to the safe-haven USD. On the other hand, concerns about global fuel demand were evident from a weaker tone surrounding crude oil prices. In fact, WTI crude was down around 0.40% for the day, which was seen as another factor that undermined the commodity-linked currency – the loonie – and remained supportive of the USD/CAD pair's strong intraday positive move. Currently, the TSX is down 0.14% and the DJIA is down 0.37%. EURCAD is up 0.28% trading between 1.5493 and 1.5591. GBPCAD is up 0.29% trading between 1.7171 and 1.7297. JPYCAD is up 0.56% trading between 0.01221 and 0.01230. Gold is up 0.04% trading between $1,816 - $1,856USD/oz. Silver is down 0.83% trading between $24.32 - $25.50. Oil (WTI crude) is down 0.40% trading between $51.50 - $52.35.

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

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