​VBCE Daily Foreign Exchange Update for Thursday Oct 26, 2016

USDCAD spot rate: 1.3365 - 1.3370 (as at 7:42am PST)

Ranges:

Asia:

1.3367

to

1.3395

Europe:

1.3353

to

1.3395

North America:

1.3355

to

1.3385

Technical Support / Resistance:

S2

S1

R1

R2

1.3200

1.3250

1.3395

1.3450

Key Economic Data Releases:

- U.S. Initial Jobless Claims 258k (255k exp.) 261k previous

- U.S. Durable Goods -.1% ( .1% exp.) .3% previous

Key Event Calendar:

Date

Canada

U.S.A.

Oct. 28

GDP Q3, GDP price index, consumer sentiment

Reassuring results from some of Europe's biggest banks gave financials a boost on Thursday , while higher bond yields underpinned the US dollar. As corporate earnings continued to dominate headlines, growing expectations that the U.S. Federal Reserve will raise interest rates by the end of the year have kept gains in risky assets in check. Markets are now pricing in a 74-per-cent chance that the U.S. Federal Reserve will raise interest rates at its December meeting, according to CME Group's FedWatch tool, following a series of hawkish comments from Fed policy makers. Bets that the Fed will hike rates have driven the dollar to nine-month highs against a basket of currencies this week and have supported U.S. 10-year Treasury yields. The "steepening" of the US yield curve works as a magnet for capital coming at this point in particular out of low yielding environments such as Japan and Switzerland, and these flows will continue to support the dollar. Currently, the TSX is up 0.29% and the Dow is up 0.07%. EURCAD is up 0.03% trading between 1.4578 and 1.4619. GBPCAD is down 0.30% trading between 1.6305 and 1.6397. JPYCAD is down 0.22% trading between 0.01274 and 0.01282. Gold is up 0.30% trading between $1,265 and $1,272USD/oz., silver is down 0.10% trading between $17.55 and $17.73USD/oz., while oil is up 0.65% trading between $49.04 and $49.74.

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.