​VBCE Daily Foreign Exchange Update for Friday, Aug 26, 2016


USDCAD spot rate: 1.2880 - 1.2885 (as at 7:58am PST)

Ranges:

Asia:

1.2893

to

1.2925

Europe:

1.2893

to

1.2915

North America:

1.2832

to

1.2949

Technical Support / Resistance:

S2

S1

R1

R2

1.2760

1.2840

1.2950

1.3075

Key Economic Data Releases:

- U.S. GDP Q2 preliminary: 1.1% (exp 1.1%/prev 1.2%)

- U.S. GDP price index: 2.3% (exp 2.2%/prev 2.2%)

- U.S. goods trade balance: -$59.32 billion (exp.-$62.33 billion/prev -$63.30 billion)

- U.S. consumer sentiment index: 89.8 (exp. 90.8/prev 90.4)

- Fed Yellen speech

Key Event Calendar:

Date

Canada

U.S.A.

Aug 29

Aug 30

Aug 31

Sept. 1

Sept. 2

Current account

GDP (June)

RBC mfg index

Trade balance

Core personal consumption expenditure

Consumer confidence

ADP employment, pending home sales, crude oil inventories

ISM manufacturing index

Non-farm payrolls, unemployment rate, Avg hourly earnings, trade balance

Yesterday, USDCAD held in a familiar range of 1.29 – 1.2948 spending most of the day anchored near 1.2925 as markets awaited today's key 7:00am speech by Fed Chair Yellen. Overnight, USDCAD held in a 1.2893 / 1.2925 range before falling to 1.2862 on broad-based USD weakness after preliminary U.S. Q2 GDP data came in as expected. The pairing then spiked higher from 1.2880 to 1.2949 on Yellen's opening comments that "the case for an increase in the federal funds rate has strengthened in recent months". There were no further details about the likelihood of a September rate hike while oil prices spiked $1 on reports of a Yemen missile attack on a Saudi refinery. As quickly as it had risen, USDCAD plunged to 1.2832 but within minutes oil prices dropped back sending USDCAD back up towards 1.2900. Currently, the TSX and the DJIA are up 0.69% and 0.52% respectively. EURCAD is down 0.40% trading between 1.4502 and 1.4586. GBPCAD is down 0.25% trading between 1.6976 and 1.7076. JPYCAD is down 0.30% trading between 0.01281 and 0.01285. Gold is up 1.27% trading between $1,319 and $1,342USD/oz., silver is up 2.44% trading between $18.49 and $19.07USD/oz., while oil is up 1.75% trading between $46.97 and $48.44.

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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.