​VBCE Daily Foreign Exchange Update for Thursday, Sept. 1, 2016

USDCAD spot rate: 1.3090 - 1.3095 (as at 7:53am PST)

Ranges:

Asia:

1.3093

to

1.3122

Europe:

1.3100

to

1.3130

North America:

1.3088

to

1.3148

Technical Support / Resistance:

S2

S1

R1

R2

1.3010

1.3080

1.3148

1.3200

Key Economic Data Releases:

- Canada RBC manufacturing index: 51.1 (prev. 51.9)

- U.S. initial jobless claims: 263,000 (exp. 265,000)

- U.S. Markit manufacturing PMI: 52.0 (exp. 52.1)

- U.S. ISM manufacturing PMI: 49.4 (exp. 52.0)

- U.S. construction spending: 0.0% (exp. 0.5%)

Key Event Calendar:

Date

Canada

U.S.A.

Sept. 2

Trade balance

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

Yesterday, USDCAD continued higher for the 4th consecutive day climbing from 1.3079 up to 1.3146 before easing to close the month of August essentially unchanged near its 1.31 opening level. The pairing spent most of the overnight session anchored near 1.31 before moving higher in early North American trade. After posting a marginal new high of 1.3148 (vs. yesterday's 1.3146), there was a sharp USD sell-off after the release of the 7:00am U.S. ISM data. USDCAD dropped to session lows near 1.3088 and has been unable to break back above the 1.3100 level thus far. Tomorrow, the U.S. is expected to add 180,000 new jobs after previously adding 255,000. The unemployment rate is expected to tick down from 4.9% to 4.8%. Currently, the TSX is up 0.21% while the DJIA is down 0.40%. EURCAD is up 0.20% trading between 1.4600 and 1.4659. GBPCAD is up 1% trading between 1.7209 and 1.7455. JPYCAD is unchanged trading between 0.01263 and 0.01271. Gold is up 0.34% trading between $1,302 and $1,314USD/oz., silver is up 0.66% trading between $18.60 and $18.81USD/oz., while oil is down 2.3% trading between $43.61 and $45.05.

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

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