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

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

Ranges:

Asia:

1.2842

to

1.2855

Europe:

1.2833

to

1.2857

North America:

1.2826

to

1.2914

Technical Support / Resistance:

S2

S1

R1

R2

1.2760

1.2812

1.2940

1.3048

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:

Date

Canada

U.S.A.

Sept. 8

Sept. 9

Building Permits, New House price index

Housing starts, net employment change, Unemployment rate

Crude Oil Inventories

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 2nd quarter, the Bank still projects a substantial rebound in the 2nd 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 2nd 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 3rd 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

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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.