VBCE Daily Foreign Exchange Update for Wedesday, Oct. 12, 2016

USDCAD spot rate: 1.3270 - 1.3275 (as at 8:36am PST)

Ranges:

Asia:

1.3213

to

1.3241

Europe:

1.3214

to

1.3275

North America:

1.3269

To

1.3275

Technical Support / Resistance:

S2

S1

R1

R2

1.3067

1.3172

1.3281

1.3300

Key Economic Data Releases:

- FOMC meeting minutes 11am

Key Event Calendar:

Date

Canada

U.S.A.

Oct. 13

Oct. 14

Crude oil inventories

Retail sales, producer price index

The USD held near a 2 month high and Treasuries slid as traders await minutes of the Federal Reserve's latest policy meeting that may provide clues on the path of the U.S. interest rates. Recent economic data beating forecasts and comments by Fed officials have fueled bets that the central bank is on path to increase rates this year. Investors currently assign about a two-thirds chance of a December rate increase, based on prices in federal fund futures contracts, and a less than 20% chance of a move next month. Sterling lost significant ground yesterday but recovered a good deal of those losses so far today. At 12:30pm in London, UK Parliament will discuss a motion from opposition Labour Party calling for a full transparent debate on the government's plan for leaving the EU that would allow MPs to properly scrutinize that plan before PM May begins formal talks. Currently, the TSX is up 0.11% and the Dow is down 0.04%. EURCAD is down 0.2% trading between 1.4571 and 1.4654. GBPCAD is up 0.9% trading between 1.6060 and 1.6284. JPYCAD is down 1.27% trading between 0.01273 and 0.01280. Gold is down 0.35% trading between $1,249 and $1,258USD/oz., silver is up 0.16% trading between $17.36 and $17.61USD/oz., while oil is down 1.49% trading between $49.92 and $51.14.

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.