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

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

Ranges:

Asia:

1.2910

to

1.2941

Europe:

1.2910

to

1.2958

North America:

1.2940

to

1.3047

Technical Support / Resistance:

S2

S1

R1

R2

1.2910

1.2988

1.3050

1.3148

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:

Date

Canada

U.S.A.

Sept. 12

Sept. 13

Sept. 14

Sept. 15

Sept. 16

Manufacturing sales

Import / export price index

PPI, retail sales, industrial production, current acct Q2

Philly Fed / NY Empire state manufacturing indexes

CPI, consumer sentiment index

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 2nd 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

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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.