Daily foreign exchange rates for our top 10 currencies & Update #forex #Vancouver August 7,2020


VBCE Daily Foreign Exchange Update for Friday, August 7, 2020

USDCAD spot rate: 1.3380 - 1.3385 (as at 7:57am PST)

Ranges:

Asia:

1.3305

to

1.3372

Europe:

1.3340

To

1.3367

North America:

1.3325

to

1.3398

Technical Support / Resistance:

S2

S1

R1

R2

1.3275

1.3325

1.3400

1.3450

Key Economic Data Releases:

- Canada net employment change: 418,500 exp 400,000 prev 952,900

- Canada unemployment rate: 10.9% exp 11% prev 12.3%

- Canada Ivey purchasing managers index: 68.5 exp 57.5 prev 58.2

- U.S. non-farm payrolls: 1,763,000 exp 1,600,000 prev 4,791,000

- U.S. unemployment rate: 10.2% exp 10.5% prev 11.1%

Event Calendar:

Date

Canada

U.S.A.

Aug 10

Aug 11

Aug 12

Aug 13

Aug 14

Housing starts

Manufacturing sales

Producer price index

CPI, crude oil stocks change

Initial jobless claims

Retail sales, industrial production

Yesterday, USDCAD dipped to 1.3244 – just shy of Wednesday's low of 1.3234 (lowest since Feb. 21) before climbing to 1.3323. After equity markets rallied to new highs, USDCAD dropped back to 1.3275 before climbing back to 1.3320 in late trade as Trump announced a 10% tariff on Canadian aluminum imports into the United States. The CAD continued to weaken overnight as Canada threatened $ for $ countermeasures sending USDCAD back up through the broken support zone (1.3320-1.3330) to a high of 1.3372. Both Canadian and U.S. job numbers beat estimates while North American equity markets recouped overnight losses. The S&P 500 and NASDAQ are holding near all-time highs. USDCAD dipped to 1.3325 but has since turned higher on broad-based USD strength. U.S. yields are higher as well while the Dollar index has climbed from 27 month lows (92.50) towards a 4 day high (93.62). The USDCAD rally higher stalled just shy of 1.3400 before easing back to 1.3375. The market now awaits any news on the Covid stimulus front as the U.S. has yet to finalize a new deal to replace the support that expired at the end of July. Currently, the TSX and the DJIA are both down 0.50%. EURCAD is down 0.15% trading between 1.5732 and 1.5825 after trading near 28 month highs last week. GBPCAD is down 0.15% trading between 1.7419 and 1.7532 – near 4 month highs. JPYCAD is up 0.25% trading between 0.01260 and 0.01266 – down from 2 month highs seen last week. Gold is down 1.25% after hitting new historical highs trading between $2,023 - $2,075USD/oz. Silver is down 3.6% trading between $27.38 - $29.85 – near 7 year highs. Oil (WTI crude) is down 1.30% trading between $41.37 - $42.38 after hitting 5m highs @ $43 Wednesday.

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

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