​VBCE Daily Foreign Exchange Update for Thursday, Oct. 6, 2016

USDCAD spot rate: 1.3230 - 1.3235 (as at 8:02am PST)

Technical Support / Resistance:

Key Economic Data Releases:

- Canada building permits: 10.4% (exp. 3.0% / prev. 3.4%)

- U.S. initial jobless claims: 249,000 (exp. 257,000 / prev. 254,000)

Key Event Calendar:

Yesterday, USDCAD climbed from 1.3170 up to 1.3233 only to fall back to 1.3161. Trade above 1.32 was limited to about 45 minutes as a fifth consecutive surprise draw from oil inventories gave oil prices and the CAD a boost. Overnight, USDCAD climbed back to 1.3210 and the pairing has extended up to 1.3249 this morning as the USD broadly gains for the 3^rd consecutive day. Despite the fact that oil prices have gained 13% over the past week, the USDCAD rate has actually moved higher to trade near the upper end of its recent 1.30 – 1.3280 range. Over the past few days, there have been several U.S. Fed members offering up hawkish commentary and the probability of a December interest rate hike now sits at 55%. Focus now shifts to tomorrow's jobs data. Canada is expected to add 10,000 jobs after having added 26,200 in August. The unemployment rate should hold steady at 7.0%. The U.S. is expected to add 175,000 new jobs after having added 151,000 last month. The unemployment rate should remain unchanged at 4.9%. Currently, the TSX and the DJIA are down 0.12% and 0.46% respectively. EURCAD is unchanged trading between 1.4737 and 1.4800. GBPCAD is down 0.30% trading between 1.6658 and 1.6816. JPYCAD is unchanged trading between 0.01269 and 0.01275. Gold is down 1% trading between $1,251 and $1,269USD/oz., silver is down 2.25% trading between $17.21 and $17.84USD/oz., while oil is up 0.75% trading between $49.35 and $50.49.

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