VBCE Daily Foreign Exchange Update for Monday, Sept. 12, 2016

USDCAD spot rate: 1.3080 - 1.3085 (as at 8:08am PST)

Ranges:

Asia:

1.3049

to

1.3074

Europe:

1.3066

to

1.3115

North America:

1.3091

to

1.3115

Technical Support / Resistance:

S2

S1

R1

R2

1.2910

1.2969

1.3148

1.3182

Key Economic Data Releases:

- No data releases

Key Event Calendar:

Date

Canada

U.S.A.

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

CAD is weak and underperforming all of the G10 currencies in tandem with AUD in an environment of elevated risk. The broader tone is dominant, oil price are weakening, and yield spreads are widening in a CAD-negative manner, leaving our dollar vulnerable to further decline. Federal Reserve Governor Lael Brainard is due to give a speech today in Chicago that will be closely watched by investors looking for some guidance on the U.S. central bank's interest rate intentions. With hawkish comments from Boston Fed President Eric Rosengen last Friday taking some of the blame for that day's sell off, any sign of an inclination towards imminent tightening today may move markets further into the red. The futures implied probability of a rate rise by the end of the year has risen to 60% this morning. Currently, the TSX is down 0.02% while the Dow is up 0.16%. EURCAD is up 0.42% trading between 1.4614 and 1.4745. GBPCAD is up 0.70% trading between 1.7292 and 1.7441. JPYCAD is up 1.13% trading between 0.01269 and 0.01287. Gold is down 0.15% trading between $1,322 and $1,330USD/oz., silver is down 0.55% trading between $18.72 and $19.15USD/oz., while oil is up 1.42% trading between $44.76 and $45.39.

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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.