​VBCE Daily Foreign Exchange Update for Wednesday Sept. 7 , 2016

USDCAD spot rate: 1.2890 - 1.2895 (as at 8:52am PST)

Technical Support / Resistance:

Key Economic Data Releases:

-Canada Ivey PMI (Aug) 52.3 (55.4 exp.) 57.00 previous

-Bank of Canada Interest rate: http://www.bankofcanada.ca/2016/09/fad-press-release-2016-09-07/

Key Event Calendar:

The CAD weakened against most of its major peers after the central bank held its benchmark rate at 0.5 percent, which was expected. While Canada's economy shrank in the 2^nd quarter, the Bank still projects a substantial rebound in the 2^nd half of the year. The loonie gained in the past few days alongside other major currencies amid dissipating expectations for a U.S. interest-rate increase this year. Yet the CAD has lagged behind most of its peers this quarter after a string of disappointing data from the country's economy, including the biggest gross-domestic-product contraction since 2009 in the 2^nd quarter and a shrinking jobs market. Meanwhile in the UK, Bank of England Governor Mark Carney testified to lawmakers in London and stood by the actions of the BOE around the Brexit vote. He stated "in light of all the events since the referendum, he's absolutely serene about the judgments taken by the BOE officials including the Monetary Policy Committee". While initial data suggests their economy remained resilient after the vote, the Office for National Statistics won't publish its first take on 3^rd quarter growth until the end of October. The TSX is down 0.24% while the Dow is down 0.23%. EURCAD is up 0.32% trading between 1.4421 and 1.4520. GBPCAD is down 0.14% trading between 1.7133 and 1.7267. JPYCAD is up 0.82% trading between 0.01258 and 0.01270. Gold is down 0.35% trading between $1,342 and $1,352 USD/oz., silver is down 1.17% trading between $19.76 and $20.12 USD/oz., while oil is up 0.02% trading between $44.58 and $45.40 USD/barrel.

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