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

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

Technical Support / Resistance:

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:

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 2^nd 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