​VBCE Daily Foreign Exchange Update for Friday, Oct. 14, 2016

USDCAD spot rate: 1.3140 - 1.3145 (as at 7:20am PST)

Ranges:

Asia:

1.3184

to

1.3220

Europe:

1.3153

to

1.3207

North America:

1.3132

to

1.3180

Technical Support / Resistance:

S2

S1

R1

R2

1.3067

1.3132

1.3220

1.3300

Key Economic Data Releases:

- U.S. retail sales: 0.6% (exp. 0.6% / prev. -0.2%) core: 0.5% (exp. 0.4% / prev. -0.2%)

- U.S. producer price index m/m: 0.3% (exp. 0.2% / prev. 0) y/y: 0.7% (exp. 0.6% / prev. 0%)

- U.S. PPI Core m/m: 0.2% (exp. 0.1% / prev. 0.1%) y/y: 1.2% (exp. 1.2% / prev. 1.0%)

- U.S. consumer sentiment: 87.9 (exp. 91.9 / prev. 91.2)

Key Event Calendar:

Date

Canada

U.S.A.

Oct. 17

Oct. 18

Oct. 19

Oct. 20

Oct. 14

Manufacturing sales

Bank of Canada interest rate

CPI, retail sales

NY Empire state mfg., Industrial production

CPI

Housing starts, building permits

Philly Fed mfg., existing home sales

Yesterday, USDCAD climbed from 1.3261 up to 1.3307 only to fall back to 1.3185. The pairing then remained confined to a 1.3190 – 1.3210 range for the balance of the day. Overseas markets were selling off following in the footsteps of the late decline in North American markets after Wednesday's U.S. Fed meeting minutes. However North American markets reversed course yesterday and oil prices shrugged of a quick 2% decline after the inventory data showed a larger than expected build in inventories to close the day back above the $50 level. The CAD was the best performing currency yesterday and is the 2nd best performer day behind the AUD. U.S. data came in largely as expected this morning while global equity markets continue to make gains. Overnight, USDCAD briefly popped back above the 1.32 level only to fall to 1.3153 ahead of the U.S. data releases. A quick move up to 1.3180 was followed by a decline to 1.3132 – a two week low for the pairing. Corrections have been limited to 1.3150 thus far. The EURCAD rate has declined towards a 2 month low while the JPY is near a 1 month low. Currently, the TSX and the DJIA are up 0.45% and 0.84% respectively. EURCAD is down 0.75% trading between 1.4478 and 1.4592. GBPCAD is down 0.75% trading between 1.6045 and 1.6173. JPYCAD is down 1% trading between 0.01261 and 0.01273. Gold is up 0.12% trading between $1,246 and $1,260USD/oz., silver is up 0.64% trading between $17.32 and $17.58USD/oz., while oil is unchanged trading between $50.32 and $51.12.

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.