VBCE Daily Foreign Exchange Update for Thursday, Sept. 22, 2016

USDCAD spot rate: 1.3030 - 1.3035 (as at 8:32am PST)

Ranges:

Asia:

1.3060

to

1.3120

Europe:

1.3011

to

1.3074

North America:

1.3000

to

1.3030

Technical Support / Resistance:

S2

S1

R1

R2

1.2943

1.3000

1.3120

1.3240

Key Economic Data Releases:

- US Initial Jobless Claims 252K (262K exp.) 260K previous

- US Existing Home Sales -0.9% (1.1% exp.) -3.4% previous

Key Event Calendar:

Date

Canada

U.S.A.

Sept. 23

CPI, retail sales

Manufacturing PMI

World shares and bonds rallied on Thursday, after the Federal Reserve left U.S. interest rates unchanged and slowed the pace of future hikes, weakening the dollar and lifting commodity prices. The Fed did signal it could hike rates by year-end as the labour market improved further, but cut the number of rate increases expected in 2017 and 2018. It also reduced its longer-run interest rate forecast to 2.9 per cent from 3 per cent. That left investors feeling any tightening would be glacial at best. Market pricing for a December move rose only a fraction to 59.3 per cent, from 59.2 per cent, according to CME Group's FedWatch tool. Currently, the TSX is up 0.81% and the Dow is up 0.72%. EURCAD is down 0.02% trading between 1.4613 and 1.4663. GBPCAD is up 0.10% trading between 1.6996 and 1.7086. JPYCAD is down 0.91% trading between 0.01291 and 0.01305. Gold is up 0.28% trading between $1,331 and $1,340USD/oz., silver is up 1.00% trading between $19.71 and $20.06USD/oz., while oil is up 1.38% trading between $45.55 and $46.49

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

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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.