​VBCE Daily Foreign Exchange Update for Friday, May 27, 2016

USDCAD spot rate: 1.3015 - 1.3020 (as at 8:28am PST)

Ranges:

Asia:

1.2968

to

1.2998

Europe:

1.2990

to

1.3050

North America:

1.3015

to

1.3068

Technical Support / Resistance:

S2

S1

R1

R2

1.2911

1.2970

1.3053

1.3110

Key Economic Data Releases:

- U.S. GDP Q1: 0.8% (exp. 0.9%)

- U.S. GDP price index: 0.6% (exp. 0.7%)

- U.S. consumer sentiment index: 94.7 (exp. 95.4)

Key Event Calendar:

Date

Canada

U.S.A.

May 30

May 31

June 1

June 2

June 3

Current account Q1

GDP (March) / GDP Q1

RBC manufacturing PMI

Trade balance

Memorial Day

Core PCE price index, consumer confidence

ADP employment change, ISM mfg. PMI

Crude oil inventories

Non-farm payrolls, unemployment rate, avg. hourly earnings, trade balance, ISM non-mfg

Yesterday, USDCAD dropped from 1.3040 down to a 1 week low of 1.2911 before bouncing back to 1.3005. The pairing would then ease lower to hold a 1.2965 – 85 range for the balance of the session. USDCAD largely tracked oil prices which saw early gains above $50 (7 month high) before falling towards $49. Overnight, commodities were under pressure and the USD broadly gained ahead of the 5:30am GDP release. USDCAD climbed from 1.2968 to 1.3050 before falling back to 1.3030. First quarter GDP was revised higher but missed estimates by a touch. USDCAD reacted by bouncing between 1.3020 / 1.3038 for the next 30 minutes before making another run higher as oil prices broke below $49. The move higher stalled at 1.3068 and USDCAD has since fallen to North American session lows near 1.3010. Currently, the TSX and the DJIA are up 0.36% and 0.10% respectively. EURCAD is down 0.20% trading between 1.4496 and 1.4584. GBPCAD is up 0.20% trading between 1.9020 and 1.9128. JPYCAD is up 0.30% trading between 0.01180 and 0.01191. Gold is down 0.75% trading between $1,210 and $1,223USD/oz., silver is down 0.65% trading between $16.14 and $16.36USD/oz., while oil is down 0.60% trading between $48.72 and $49.44.

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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.