​VBCE Daily Foreign Exchange Update for Friday, Sept. 9, 2016

USDCAD spot rate: 1.3037 - 1.3042 (as at 7:51am PST)

Technical Support / Resistance:

Key Economic Data Releases:

- Canada employment change: 26,200 (exp. 15,000 / prev. -31,200)

- Canada full time employment change: 52,200 (prev. -71,400)

- Canada part-time employment: -26,000 (prev. 40,200)

- Canada unemployment rate: 7.0% (exp. 6.9/ prev. 6.9%)

- Canada participation rate: 65.5% (prev. 65.4%)

Key Event Calendar:

Yesterday, USDCAD initially fell from 1.2888 down to 1.2851 but then rallied to 1.2935 despite higher oil prices stemming from indications of a large draw from inventories. EIA data confirmed a 14.5 million barrel draw (exp. 0.225 million build) sending oil prices up nearly $2. USDCAD dropped to 1.2870 but the move was short-lived. Despite oil prices gaining nearly 5% on the day, USDCAD bounced back above the 1.29 level and remained in a 1.2910 – 1.2930 range for the balance of the day. Overnight, USDCAD dipped from 1.2941 down to 1.2910 but reversed up to 1.2965 ahead of the Canadian jobs report on broad-based USD strength after a series of hawkish comments by U.S. Fed member Rosengren. Canadian jobs data was very solid adding 52,200 full time jobs. The kneejerk reaction was a fall to 1.2940 but USDCAD bounced to 1.30 within minutes. The pairing has continued higher towards a 1 week high of 1.3047. After a pull-back to 1.3012, the 1.3047 level was re-tested a 2^nd time. Currently, the TSX and the DJIA are down 0.83% and 1% respectively. EURCAD is up 0.50% trading between 1.4558 and 1.4628. GBPCAD is up 0.50% trading between 1.7190 and 1.7314. JPYCAD is up 0.50% trading between 0.01260 and 0.01269. Gold is down 0.34% trading between $1,330 and $1,340USD/oz., silver is down 1.13% trading between $19.33 and $19.65USD/oz., while oil is down 2.41% trading between $46.32 and $47.33.

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