​VBCE Daily Foreign Exchange Update for Monday, Oct. 03, 2016

USDCAD spot rate: 1.3130 - 1.3135 (as at 8:36am PST)

Ranges:

Asia:

1.3112

to

1.3131

Europe:

1.3076

to

1.3124

North America:

1.3085

to

1.3135

Technical Support / Resistance:

S2

S1

R1

R2

1.3000

1.3039

1.3166

1.3270

Key Economic Data Releases:

- Canada RBC Manufacturing PMI: 50.3 (exp.52.1 / prev. 53.3)

- U.S. Markit Manufacturing PMI: 51.5 (exp. 51.4 / prev. 51.4%)

- U.S. ISM Manufacturing PMI: 51.5 (exp. 50.3 / prev. 49.4)

Key Event Calendar:

Date

Canada

U.S.A.

Oct. 4

Oct. 5

Oct. 6

Oct. 7

Trade balance

Building permits

Employment change, unemployment rate Ivey PMI, Bank of Canada business outlook survey

ADP employment change, trade balance, Non-mfg. PMI, crude oil inventories

Non-farm payrolls, unemployment rate, avg hourly earnings

The pound approached a three decade low set in the days following the Brexit referendum after the UK Prime Minster Theresa May said she'll begin the process of withdrawal from the EU in the first quarter of 2017. Sterling dropped to the weakest level since July 6, the day is reached its 31 year low, and slipped against all but one of its 31 major peers. Hedge fund data showed speculators raised bets that the currency would fall. May told delegates at her Conservative Party's annual conference that she'll curb immigration, stoking speculation the nation is headed toward a so-called hard Brexit-with limited access to the EU's single market. Meanwhile, with the Fed deciding last month to wait for stronger signs of growth before raising rates again, some central bank officials have since publicly endorsed a hike in the near term amid signs of a tightening labor market and expectations that inflation will move closer to the Fed's 2% target. Traders are pricing in a 60% chance of a Fed action in December. Currently, the TSX is down 0.24$ and the Dow down 0.29%. EURCAD is unchanged trading between 1.4685 and 1.4760. GBPCAD is down 0.89% trading between 1.6818 and 1.7017. JPYCAD is down 0.08% trading between 0.01290 and 0.01296. Gold is down 0.27% trading between $1,311 and $1,319USD/oz., silver is down 1.05% trading between $18.90 and $19.31USD/oz., while oil is up 0.20% trading between $47.81 and $48.84.

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.