VBCE Daily Foreign Exchange Update for Wednesday, Sept. 21, 2016

USDCAD spot rate: 1.3192 - 1.3297 (as at 8:32am PST)

Technical Support / Resistance:

Key Economic Data Releases:

- Canada Wholesale sales (Jul) 0.3% (0.2% exp.) 0.7% previous

- US crude oil inventories 6.20M (3.35M exp.) -0.559M previous

- Fed interest rate decision, economic projections 11am, followed by Fed Yellen speech

Key Event Calendar:

The USD is lower overall as trading has essentially entered a holding pattern with attention turning to the Fed's latest monetary policy decision which is set to be released at 11am, followed by a speech by Janet Yellen at 11:30am. With market-implied odds of an interest rate rise hovering around 20%, tightening today would come as a major surprise to investors, even as some argue that the time is right to hike. With the presidential election looming, a decision to delay raising rates potentially comes with political baggage. Even if there is no hike, the statement's description of the economy, a fresh set of quarterly economic projections and Yellen's press conference could shed light on what the Fed may do next. Meanwhile, the BoJ left their policy rate unchanged at -10bpts while keeping the option to cutting it further. BoJ introduced "QQE with Yield Curve Control", a new policy framework that will seek to control both short-term & long-term interest rates. The framework is complemented by an inflation-overshooting commitment. Currently, the TSX is up 0.87% and the Dow is up 0.32%. EURCAD is down 0.02% trading between 1.4648 and 1.4735. GBPCAD is down 0.04% trading between 1.7071 and 1.7154. JPYCAD is up 1.15% trading between 0.01284 and 0.01311. Gold is up 0.84% trading between $1,307 and $1,330USD/oz., silver is up 2.54% trading between $19.04 and $19.75USD/oz., while oil is up 1.46% trading between $44.05 and $45.45

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