​VBCE Daily Foreign Exchange Update for Wednesday, Oct. 19, 2016

USDCAD spot rate: 1.3105 - 1.3110 (as at 8:58am PST)

Ranges:

Asia:

1.3092

to

1.3117

Europe:

1.3078

to

1.3118

North America:

1.3012

to

1.3113

Technical Support / Resistance:

S2

S1

R1

R2

1.29

1.2950

1.3130

1.3200

Key Economic Data Releases:

- Bank of Canada interest rate announcement:

http://www.bankofcanada.ca/wp-content/uploads/2016/10/fad-press-release-2016-10-19.pdf

- U.S. Housing Starts: 1.047M (exp. 1.175M / prev. 1.150M)

- U.S. Building permits: 1.225M (exp. 1.165M / prev. 1.152M)

Key Event Calendar:

Date

Canada

U.S.A.

Oct. 20

Oct. 21

CPI, retail sales

Philly Fed mfg., existing home sales

As expected, The Bank of Canada announced today that it is maintaining its target for the overnight rate at 0.50%. They commented that the economy is working its way back from shock and that it's on track for a 2nd half rebound on stronger exports. The CAD has dropped since the BoC press conference where they actively discussed adding more monetary stimulus. Meanwhile, oil has broken to its highest level since July after a surprise drawdown in US energy supplies. If crude can hold these levels or close above $52, it sets up a continued rally, maybe even to $60 or better. The TSX is up 0.33% and the Dow is up 0.36%. EURCAD is down 0.47% trading between 1.4264 and 1.4421. GBPCAD is up 0.39% trading between 1.5989 and 1.6141. JPYCAD is down 0.29% trading between 0.01260 and 0.01269. Gold is up 0.75% trading between $1,260 and $1,273USD/oz., silver is up 0.59% trading between $17.57 and $17.77USD/oz., while oil is up 1.85% trading between $50.72 and $51.92.

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.