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

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

Technical Support / Resistance:

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:

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