​VBCE Daily Foreign Exchange Update for Monday, Oct. 24, 2016

USDCAD spot rate: 1.3373 - 1.3378 (as at 8:42am PST)

Ranges:

Asia:

1.3332

to

1.3358

Europe:

1.3331

to

1.3349

North America:

1.3340

to

1.3379

Technical Support / Resistance:

S2

S1

R1

R2

1.3190

1.3248

1.3401

1.3460

Key Economic Data Releases:

- Canada Wholesale sale: 0.8% (exp. 0.6% / prev. 0.1%)

- U.S. Manufacturing PMI: 53.2 (exp. 51.5 / prev. 51.5)

Key Event Calendar:

Date

Canada

U.S.A.

Oct. 25

Oct. 26

Oct. 27

Oct. 28

Housing price index, consumer confidence

Services PMI, oil inventories, new home sales

Durable goods, pending home sales

GDP Q3, GDP price index, consumer sentiment

The data calendar is quite light for North America at the start of this week, but is a little fuller after mid-week with PMI, durable goods and GDP releases due. Canada's central bank is sticking with its 2% inflation target for another 5 years, saying the well-established mandate remains the best way to support a weak economy. BoC acknowledged it studied the possibility of raising the target, which theoretically could give more room to add stimulus. The costs of change, however, were deemed too high. Positive US data reports this week should serve to bolster expectation that the Fed will be comfortable nudging monetary policy a little higher in December. Iraq threw some sand in the gears of OPEC's latest efforts for an agreement deal to stabilize oil markets, saying it should be exempt from any deal to curb production as it's currently embroiled in a war with Islamic insurgents. UK PM Theresa May's Brexit negotiation stance is no clearer after a meeting with the leaders of Scotland, Wales and Northern Ireland. All 3 semi-autonomous governments in Edinburgh, Cardiff and Belfast have expressed concern about the damage Brexit will do to their economies, with May tending toward a deal with the EU that will favor immigration restrictions over continued membership of the single market. Currently, the TSX is down 0.27% and the Dow is up 0.47%. EURCAD is up 0.26% trading between 1.4480 and 1.4550. GBPCAD is up 0.02% trading between 1.6278 and 1.6346. JPYCAD is down 0.17% trading between 0.01280 and 0.01285. Gold is down 0.24% trading between $1,261 and $1,272USD/oz., silver is up 0.43% trading between $17.47 and $17.88USD/oz., while oil is down 1.39% trading between $50.10 and $50.96.

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.