​VBCE Daily Foreign Exchange Update for Wednesday, August 24, 2016

USDCAD spot rate: 1.2950 - 1.2955 (as at 8:26am PST)

Ranges:

Asia:

1.2920

to

1.2938

Europe:

1.2909

to

1.2942

North America:

1.2927

to

1.2955

Technical Support / Resistance:

S2

S1

R1

R2

1.2760

1.2847

1.2951

1.3048

Key Economic Data Releases:

-US Existing Home Sales (Jul) 5.39M (5.510M exp.) 5.57M previous

-US Crude Oil Inventories 2.501M (-0.455M exp.) -2.508M previous

Key Event Calendar:

Date

Canada

U.S.A.

Aug. 25

Aug. 26

Durable good, Jackson Hole Symposium

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

CAD is mostly flat from Tuesday's close, consolidating around its 100 day MA for a second consecutive session. The main event markets are watching this week's Janet Yellan's speech scheduled for this Friday in Jackson Hole, Wyoming. Amid a very quiet August, this summit is being seen as a chance for the Fed Chair to signal her rate change intentions for the back end of this year. Any description she offers of the US economy will probably be crafted to keep an interest rate rise on the table for the central bank's policy meeting next month without committing it to act. Meanwhile, after a bump in oil yesterday afternoon following reports that Iran may support an OPEC output freeze, oil has resumed its drop this morning down 1.77%. Iran also said today that they may not attend next month's OPEC meeting in Algiers. The TSX is down 0.29% while the Dow is down 0.26%. EURCAD is down 0.31% trading between 1.4529 and 1.4622. GBPCAD is up 0.52% trading between 1.7028 and 1.7152. JPYCAD is down 0.1% trading between 0.01285 and 0.01290. Gold is down 0.73% trading between $1,324 and $1,340 USD/oz., silver is down 1.06% trading between $18.57 and $18.99 USD/oz., while oil is down 1.77% trading between $46.70 and $47.71 USD/barrel

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

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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.