VBCE Daily Foreign Exchange Update for Friday, Jan. 22, 2021
USDCAD spot rate: 1.2715 - 1.2720 (as at 7:59am PST)
Ranges: | Asia: | 1.2641 | to | 1.2680 |
Europe: | 1.2673 | To | 1.2712 | |
North America: | 1.2682 | to | 1.2722 |
Technical Support / Resistance:
S2 | S1 | R1 | R2 |
1.2630 | 1.2680 | 1.2750 | 1.2800 |
Key Economic Data Releases:
- Canada retail sales: 1.3% exp 0.1% prev 0.4% ex-autos: 2.1% exp 0.3% prev 0%
- U.S. market manufacturing PMI: 59.1 exp 56.5 prev 57.1
Event Calendar:
Date | Canada | U.S.A. |
Jan. 25 Jan. 26 Jan. 27 Jan. 28 Jan. 29 | Building permits GDP (Nov) | Housing price index, consumer confidence Durable goods, Fed interest rate decision GDP Q4, jobless claims Personal income/spending, Chicago PMI, consumer sentiment index |
Yesterday, USDCAD dropped from 1.2640 down to 1.2589 before climbing back to 1.2648. The strong correlation with equity market performance continues to hold up well. After hitting all-time highs during early trade yesterday, global equities are under pressure today. Oil prices were also down as much as 3% with flows driving the USD and JPY higher. The CAD is the worst performing currency on the day thus far despite strong November retail sales data. The advanced reading (-2.6%) for December effectively erases the strong November gain. USDCAD climbed steadily from 1.2641 up to 1.2716 before a minor pull-back to 1.2682. A second move higher has the pair now at session highs (1.2727). Currently, the TSX and the DJIA are down 0.70% after hitting all-time highs earlier this week. EURCAD has recovered from near 7 month lows - up 0.66%, trading between 1.5364 and 1.5481. GBPCAD has recovered from near 1 month lows - up 0.15% trading between 1.7320 and 1.7389. JPYCAD has recovered from near 11 month lows - up 0.32% trading between 0.01220 and 0.01225. Gold is down 0.70% trading between $1,837 - $1,871USD/oz – near a 1 month low. Silver is down 1.70% trading between $25 - $26/oz. Oil (WTI crude) is down 1% near a 2 week low trading between $51.42 - $53.13.
Sources: Reuters, Bloomberg, FXStreet, RBC Capital Markets, Bank of Canada, U.S. Federal Reserve, CNBC, Forexlive, CME Group