​VBCE Daily Foreign Exchange Update for Tuesday, August 23, 2016

USDCAD spot rate: 1.2910 - 1.2915 (as at 8:22am PST)

Ranges:

Asia:

1.2881

to

1.2928

Europe:

1.2928

to

1.2903

North America:

1.2910

to

1.2950

Technical Support / Resistance:

S2

S1

R1

R2

1.2760

1.2847

1.2951

1.3048

Key Economic Data Releases:

-US New Home Sales .654M (.580M exp.) .582M previous

-US Mfg. PMI 52.1 (52.7 exp.) 52.9 previous

Key Event Calendar:

Date

Canada

U.S.A.

Aug. 24

Aug. 25

Aug. 26

Existing home sales, crude oil inventories

Durable good, Jackson Hole Symposium

GDP Q2, services PMI, Fed Yellen speech, Consumer sentiment index

World shares crept up on Tuesday while the US dollar lost ground as investors awaited further clues on whether the Federal Reserve will raise U.S. interest rates this year. European equities were higher after data that pointed to a gradual improvement in the region's economy. Early encouragement came from France where surprisingly upbeat PMI figures showed the private sector growing at its fastest pace in 10 months. Germany's PMI reading also reassured, as a combined manufacturing and services sector survey came in comfortably above the line that separates growth from contraction. The focus now is on a speech Fed Chair Janet Yellen is due to give on Friday. Investors still doubt the stars will align for a hike any time soon, so a hawkish tone from Yellen would challenge that view. The TSX is up 0.28% while the Dow is up 0.42%. EURCAD is down 0.11% trading between 1.4614 and 1.4655. GBPCAD is up 0.14% trading between 1.6973 and 1.7041. JPYCAD is down 0.02% trading between 0.01288 and 0.01291. Gold is up 0.25% trading between $1,335 and $1,344 USD/oz., silver is up 0.53% trading between $18.87 and $19.12 USD/oz., while oil is down 1.37% trading between $46.63 and $47.44 USD/barrel

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

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