​VBCE Daily Foreign Exchange Update for Friday, Sept. 2, 2016

USDCAD spot rate: 1.3025 - 1.3030 (as at 7:19am PST)

Ranges:

Asia:

1.3083

to

1.3105

Europe:

1.3088

to

1.3114

North America:

1.2989

to

1.3095

Technical Support / Resistance:

S2

S1

R1

R2

1.2965

1.3010

1.3050

1.3148

Key Economic Data Releases:

- Canada trade balance: -$2.49 billion (exp. -$3.25 billion /prev. -$3.97 billion)

- Canada labour productivity Q2: -0.3% (exp. -0.4% / prev. 0.4%)

- U.S. non-farm payrolls: 151,000 (exp. 180,000 / prev. 275,000)

- U.S. unemployment rate: 4.9% (exp. 4.8%/ prev. 4.9%)

- U.S. average hourly earnings: 0.1% (exp. 0.2%/ prev. 0.3%)

- U.S. trade balance: -$39.47 billion (exp. -$42.70 billion / prev. -$44.66 billion)

- U.S. factory orders: 1.9% (exp. 2.0% / prev. -1.8%)

Key Event Calendar:

Date

Canada

U.S.A.

Sept. 5

Sept. 6

Sept. 7

Sept. 8

Sept. 9

Labour Day

Ivey PMI, Bank of Canada int rate

Building permits, new house price index

Housing starts, net employment change, unemployment rate

Labour Day

ISM non-mfg PMI, Markit services PMI

Crude oil inventories

Yesterday, the uptrend in USDCAD stalled after retesting Wednesday's high near 1.3146 early in the North American session before a sharp, broad-based USD sell-off took USDCAD to session lows near 1.3088. The pairing remained steady near the 1.3090 – 1.3100 level for the balance of the day. The U.S. jobs report missed estimates just slightly but that was enough for a large wave of USD selling to take USDCAD down to 1.3020 from 1.3090. After a bounce to 1.3048, a 2nd wave of selling took the pairing down to 1.2989. This was short-lived as USDCAD has since bounced back towards the 1.3035 level. Currently, the TSX and the DJIA are up 0.90% and 0.55% respectively. EURCAD is down 0.75% trading between 1.4555 and 1.4683. GBPCAD is down 0.15% trading between 1.7321 and 1.7423. JPYCAD is down 1.4% trading between 0.01254 and 0.01269. Gold is up 0.86% trading between $1,305 and $1,330USD/oz., silver is up 2.3% trading between $18.76 and $19.31USD/oz., while oil is up 3% trading between $43.19 and $44.44.

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.