​VBCE Daily Foreign Exchange Update for Tuesday, Aug. 30, 2016

USDCAD spot rate: 1.3080 - 1.3085 (as at 7:58am PST)

Ranges:

Asia:

1.3010

to

1.3035

Europe:

1.3022

to

1.3049

North America:

1.3040

to

1.3088

Technical Support / Resistance:

S2

S1

R1

R2

1.2975

1.3010

1.3090

1.3175

Key Economic Data Releases:

- Canada current account: -$19.86 billion (exp -$20.20 billion/prev -$16.6 billion)

- U.S. consumer confidence: 101.1 (exp 97.0/prev 96.7)

Key Event Calendar:

Date

Canada

U.S.A.

Aug 31

Sept. 1

Sept. 2

GDP (June)

RBC mfg index

Trade balance

ADP employment, pending home sales, crude oil inventories

ISM manufacturing index

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

Yesterday, USDCAD continued higher after last week's strong close. The pairing opened the Asian session near 1.2975 and tested 1.3048 in North American trade before settling near 1.3015 for the balance of the session. Overnight, USDCAD climbed to test yesterday's high before breaking higher this morning on broad-based USD strength. Oil had made minor gains overnight but those quickly evaporated and oil is testing last week's low at the moment. USDCAD is approaching a 3 week high of 1.3090 with pullbacks limited to 1.3070 thus far. Tomorrow, Canadian GDP for June is expected to show a 0.5% growth rate after a -0.6% reading for May. Currently, the TSX is up 0.32% while the DJIA is down 0.33%. EURCAD is up 0.15% trading between 1.4547 and 1.4595. GBPCAD is up 0.50% trading between 1.7028 and 1.7156. JPYCAD is down 0.40% trading between 0.01271 and 0.01278. Gold is down 0.39% trading between $1,316 and $1,325USD/oz., silver is down 0.36% trading between $18.67 and $18.96USD/oz., while oil is down 1% trading between $46.26 and $47.46.

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

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