Daily Foreign Exchange Update for Tuesday, Sept. 20, 2016

Daily Foreign Exchange Update for Tuesday, Sept. 20, 2016

USDCAD spot rate: 1.3230 - 1.3235 (as at 7:48am PST)

Technical Support / Resistance:

Key Economic Data Releases:

- US Building Permits 1.139 M (1.170M exp.) 1.144M previous

- US Housing Starts 1.142M (1.190M exp.) 1.212M previous

Key Event Calendar:

Shares hit pause and the dollar lost ground against the yen on Tuesday, as investors awaited the outcomes of Federal Reserve and Bank of Japan meetings that will both conclude on Wednesday. Nagging doubts about the firepower left available to top central banks made for another subdued start in Europe as the STOXX 600 dipped in and out of the red after seven falls in the last 10 days. North American markets have started in the black. The yen was creeping higher in the currency markets, meanwhile amid speculation the Bank of Japan may do little more than tinker with its stimulus program and that the Federal Reserve was likely to stay guarded about its rate hike plans. Expect a quiet day, though thin trading volumes could lead to some exaggerated moves not driven by fundamental factors. Currently, the TSX is up 0.441% and the Dow is up 0.43%. EURCAD is up 0.28% trading between 1.4742 and 1.4805. GBPCAD is down 0.33% trading between 1.7135 and 1.7242. JPYCAD is up 0.45% trading between 0.01294 and 0.01301. Gold is up 0.11% trading between $1,312 and $1,318USD/oz., silver is up 0.11% trading between $19.09 and $19.29USD/oz., while oil is up 0.64% trading between $43.09 and $43.81

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