​VBCE Daily Foreign Exchange Update for Wednesday, Aug. 31, 2016

USDCAD spot rate: 1.3130 - 1.3135 (as at 8:25am PST)

Technical Support / Resistance:

Key Economic Data Releases:

- Canada GDP (Jun): 0.6% (0.4% exp) -1.06% previous

- U.S. ADP employment change: (Aug) 177k (175k exp) 194k previous

- U.S. pending home sales: 1.3% (0.6% exp) -0.8% previous

- U.S. crude oil inventories: 2.276M (0.921M exp) 2.501M previous

Key Event Calendar:

CAD is quiet consolidating in a tight range around Tuesday's close at 3 week lows. Both oil prices and yield spreads are weighing down on CAD. Stocks have wobbled between gains and losses as investors sharpen their focus toward August's employment data due on Friday, which may influence a Fed move in 3 weeks. A private report by ADP Research Institute today signaled the labor market continued to see steady growth. While policy makers have said they will boost borrowing costs gradually, Fed Chair Janet Yellen's bullish economic assessment last week spurred bets a move could come as soon as next month. Currently, the TSX is down 0.36% and the Dow is also down 0.33%. EURCAD is up 0.23% trading between 1.4577 and 1.4640. GBPCAD is up 0.43% trading between 1.7124 and 1.7257. JPYCAD is down 0.20% trading between 0.01268 and 0.01271. Gold is down 0.19% trading between $1,304 and $1,316USD/oz., silver is up 0.41% trading between $18.55 and $18.86USD/oz., while oil is down 2.96% trading between $44.87 and $46.38.