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

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

Ranges:

Asia:

1.3177

to

1.3198

Europe:

1.3181

to

1.3210

North America:

1.3196

to

1.3249

Technical Support / Resistance:

S2

S1

R1

R2

1.3067

1.3160

1.3233

1.3270

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:

Date

Canada

U.S.A.

Oct. 7

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

Non-farm payrolls, unemployment rate, avg hourly earnings

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 3rd 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

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.