​VBCE Daily Foreign Exchange Update for Tuesday, Oct. 18, 2016

USDCAD spot rate: 1.3110 - 1.3115 (as at 8:30am PST)

Ranges:

Asia:

1.3081

to

1.3136

Europe:

1.3055

to

1.3086

North America:

1.3063

to

1.3118

Technical Support / Resistance:

S2

S1

R1

R2

1.2985

1.3017

1.3140

1.3203

Key Economic Data Releases:

- U.S. CPI .3% (.3% exp.) .2% previous

- Canadian Mfg. Sales .9% (.3% exp.) .1% previous

Key Event Calendar:

Date

Canada

U.S.A.

Oct. 19

Oct. 20

Oct. 21

Bank of Canada interest rate

CPI, retail sales

Housing starts, building permits

Philly Fed mfg., existing home sales

Rising commodity prices pulled shares higher on Tuesday and the dollar slipped from a seven-month high as bond yields fell, while sterling briefly strengthened after data showed UK inflation rose by its most in more than two years last month. The weaker dollar helped lift oil and metals prices, lifting commodity related stocks in Europe Asia and North America. Sterling hit a six-day high before retreating, after data showing annual consumer price inflation in Britain accelerated to 1.0 per cent last month from 0.6 per cent in August. Sterling last stood at $1.2237, still up 0.5 per cent on the day. The numbers confirmed that a weak pound since June's vote to leave the European Union is already pushing up some prices. British 10-year government bond yields flat at 1.13 per cent, having risen in recent days with investors winding back expectations of further Bank of England rate cuts. The dollar eased by 0.2 per cent against a basket of currencies, pulling back further from a seven-month high hit on Monday, as investors digested recent comments from Yellen and other Fed officials. The TSX is up 0.45% and the Dow is up 0.48%. EURCAD is down 0.35% trading between 1.4362 and 1.4448. GBPCAD is up 0.70% trading between 1.5985 and 1.6118. JPYCAD is down 0.26% trading between 0.01256 and 0.01264. Gold is up 0.32% trading between $1,254 and $1,266USD/oz., silver is up 0.59% trading between $17.43 and $17.71USD/oz., while oil is down 0.50% trading between $49.80 and $50.50.

Sources: Reuters, Bloomberg, FXStreet, RBC Capital Markets, Bank of Canada, U.S. Federal Reserve, CNBC, Forexlive, CME Group

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