Daily foreign exchange rates for our top 10 currencies & Update #forex #Vancouver August 2, 2019

USDCAD spot rate: 1.3237 - 1.3242 (as at 8:02am PST)

Technical Support / Resistance:

Key Economic Data Releases:

- Canada Int'l merchandise trade: $0.14 billion (exp -$0.30B / prev $0.56B)

- U.S. trade balance: -$55.2 billion (exp -$54.6B / prev -$55.3B)

- U.S. non-farm payrolls: 164,000 (exp 164,000 / prev 193,000)

- U.S. unemployment rate: 3.7% (exp 3.7% / prev 3.7%)

- U.S. average hourly wages m/m: 0.3% (exp 0.2% / prev 0.3%)

- U.S. factory orders: 0.6% (exp 0.8% / prev -1.3%)

- U.S. consumer sentiment index: 98.4 (exp 98.5 / prev 98.2)

Event Calendar:

Yesterday, USDCAD initially climbed from 1.3194 up to 1.3249 – a 6 week high before falling to 1.3182 as equity markets erased the bulk of the post-Fed sell-off. In the late morning, Trump surprised the markets by announcing another tariff on China – 10% on $300 billion worth of goods. Equity markets and oil prices tumbled (the DJIA dropped over 600pts after having climbed more than 350 pts while oil fell 7.5%) sending USDCAD back up to 1.3243. The move was short-lived with the pair settling near 1.3210. USDCAD climbed back to 1.3240 in early morning trade ahead of the U.S. jobs data which came in largely as expected. Wage inflation data was touch higher while there was a negative revision to prior data (41,000). USDCAD moved marginally higher to 1.3266 but has fallen back to 1.3220 amidst broad-based USD weakness. Equity markets continue to tumble while U.S. 10 year yields have fallen to 1.87% - near 3 year lows. The probability of another U.S. interest rate cut in September has climbed to nearly 100%. Currently, the TSX and the DJIA are down 0.73% and 1.2% respectively both near 6 week lows. EURCAD has rebounded from 2 year lows - up 0.30% trading between 1.4632 and 1.4715. GBPCAD is unchanged trading between 1.5981 and 1.6091 – near 2 year lows. JPYCAD is up 0.90% trading between 0.01229 and 0.01242 – near 2 month highs. Gold is unchanged near 6 year highs trading between $1,430 and $1,456USD/oz while oil (WTI crude) is up 1.60% trading between $54.18 and $56.09 – near 6 week lows.Sources: Reuters, Bloomberg, FXStreet, RBC Capital Markets, Bank of Canada, U.S. Federal Reserve,