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.
