VBCE Weekly Foreign Exchange Wrap Up for Nov. 13 – Nov. 17, 2017

Steve Brown, Senior Corporate Trader | Stevebrown@vbce.ca

In an environment of risk aversion to begin the week, USDCAD climbed from 1.2675 up to 1.2785 before falling back to 1.2711 as markets saw broad recoveries on Thursday. USDCAD climbed to 1.2825 briefly Friday AM after Canadian inflation data came in relatively low. The pairing eased back towards the 1.2740 level as oil prices surged 2%+ to close the week unchanged near 2.5 year highs. The EUR, GBP, and JPY made gains towards multi-month highs vs. the CAD while AUDCAD fell towards 1.5 year lows.

Weekly Open

Low

High

Weekly Close

USDCAD

1.2675

1.2675

1.2825

1.2765

EURCAD

1.4786

1.4770

1.5124

1.5025

GBPCAD

1.6722

1.6590

1.6929

1.6850

JPYCAD

0.01116

0.01115

0.01142

0.01137

AUDCAD

0.9720

0.9615

0.9733

0.9646

Themes for the week:

*The EUR & JPY lead while the CAD & AUD lag

*USDCAD near 5 month highs, EURCAD and GBPCAD near 6 month highs, JPYCAD near 3 month highs, AUDCAD near 1.5 year low

*WTI crude oil unchanged near 2.5 year highs ($54.95 - $56.80 range)

*Germany GDP Q3 y/y: 2.3% (exp 2.3% / prev 1.0%)

*U.K. CPI y/y: 3.0% (exp 3.1% / prev 3.0%)

*Japan GDP Q3 y/y: 1.4% (exp 1.3% / prev 2.6%)

*U.S. CPI y/y: 2.0% (exp 2.0% / prev 2.2%)

*U.S. retail sales: 0.2% (exp 0.1% / prev 1.9%)

*Australian employment: 3,700 (exp 17,500 / prev 26,600)

*U.K. retail sales: 0.3% (exp 0.1% / prev -0.7%)

*Eurozone CPI y/y: 1.4% (exp 1.4% / prev 1.4%)

*Canada manufacturing sales: 0.5% (exp -0.3% / prev 1.4%)

*U.S. industrial production: 0.9% (exp 0.5% / prev 0.4%)

*Canada CPI y/y: 1.4% (exp 1.4% / prev 1.6%)

On Tap for Next week:

Wed Nov. 22: U.S. core durable goods orders: exp 0.5% / prev 0.7%

U.S. FOMC meeting minutes

Thur Nov 23: Germany GDP Q3 y/y: exp. 2.3% / prev 2.3%

U.K. GDP Q3 y/y: exp 1.5% / prev 1.5%

Canada core retail sales: exp 1.0% / prev -0.7%


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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.