VBCE Daily Foreign Exchange Update for Tuesday, Sept. 28, 2016

USDCAD spot rate: 1.3242 - 1.3247 (as at 8:45am PST)

Ranges:

Asia:

1.3200

to

1.3227

Europe:

1.3208

to

1.3231

North America:

1.3224

to

1.3245

Technical Support / Resistance:

S2

S1

R1

R2

1.3072

1.3162

1.3279

1.3345

Key Economic Data Releases:

- U.S. Durable Goods Orders: 0.0% (-1.5% exp.) 3.6% previous

- U.S. Crude Oil Inventories: -1.882M (2.995M exp.) -6.200M previous

Key Event Calendar:

Date

Canada

U.S.A.

Sept. 29

Sept. 30

GDP (July)

GDP Q2, GDP price index, pending home sales

Personal income/spending, Chicago PMI, consumer sentiment

The CAD is down 0.42% against the USD and is underperforming against most of the G10 currencies. The outlook for relative central bank policy remains dominant as expectations for the Bank of Canada continue to deteriorate. Markets are now pricing in a 30% chance of a 25bpt cut over the next 12 months. OPEC members begin their talks in Algiers today. Iran's minister said ahead of the meeting that his country is unwilling to freeze production at current levels and has no intention of reaching an accord this week, but hinted that an agreement could be struck at the next OPEC meeting in November in Vienna. Saudi Oil Minister Khalid Al-Falih echoed the Iranian position on a November deal, saying his country would be a willing partner in a freeze agreement. In the UK today Bank of England Deputy Governor Minouche Shafik has said that more easing would probably be needed for them following the Brexit vote. The GBP is still showing little signs of improvement as it's set for its longest run of quarterly losses since 1984. Shares in troubled German lender Deutsche Bank are staging a rally following reassurances from CEO John Cryan that the bank would not need to raise new capital and the agreement to by the bank to sell its UK insurance business for 935 million euros. The problems at the bank coupled with those at carmaker Volkswagen are so large that they risk undermining the German economy, which has been the driver of the European economic growth for some time. Currently, the TSX is up 0.47% and the Dow is down 0.06%. EURCAD is up 0.20% trading between 1.4773 and 1.4861. GBPCAD is up 0.20% trading between 1.7162 and 1.7236. JPYCAD is up 0.17% trading between 0.01311 and 0.01316. Gold is down 0.54% trading between $1,319 and $1,327USD/oz., silver is down 0.63% trading between $19.01 and $19.20USD/oz., while oil is down 0.92% trading between $44.49 and $45.75.

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

083e3d7a6b

Follow us




Follow us on Twitter @vbcefx


Disclaimer


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.