​VBCE Daily Foreign Exchange Update for Friday, Oct. 28, 2016

USDCAD spot rate: 1.3375 - 1.3380 (as at 7:53am PST)

Ranges:

Asia:

1.3375

to

1.3400

Europe:

1.3375

to

1.3400

North America:

1.3353

to

1.3419

Technical Support / Resistance:

S2

S1

R1

R2

1.3314

1.3350

1.3420

1.3500

Key Economic Data Releases:

- U.S. GDP 3rd quarter (1st reading): 2.9% (exp. 2.5% / prev. 1.4%)

- U.S. GDP price index: 1.5% (exp. 1.3% / prev. 2.3%)

- U.S. consumer sentiment index: 87.2 (exp. 88.1 / prev. 87.9)

Key Event Calendar:

Date

Canada

U.S.A.

Oct. 31

Nov. 1

Nov. 2

Nov. 3

Nov. 4

GDP Aug, RBC mfg,. Poloz speech

Employment change, Ivey PMI unemployment rate, trade balance

Core PCE price, personal income/spending

ISM manufacturing PMI

ADP employment, oil inventories, Fed interest rate / FMOC statement

ISM non-mfg PMI, factory orders

Non-farm payrolls, unemployment rate, Avg hourly earnings, trade balance

Yesterday, USDCAD dipped from 1.3396 down to 1.3351 before climbing back to 1.3407. The pairing would then hold a 1.3380 – 1.3400 range for the balance of the session. Overnight, the pairing held a 1.3375 – 1.3400 range before a quick move up to 1.3419 after the U.S. GDP headline beat estimates. There were some details within the report that could lead to downward revisions for the 2nd and 3rd readings which have caused the USD rally to stall and reverse course this morning. USDCAD has fallen to session lows at 1.3353 as the probability of a December Fed rate hike initially jumped to 80% but has come back down to 70%. USDCAD briefly corrected up to 1.3385 but has since fallen back to 1.3365. Currently, the TSX and the DJIA are up 0.10% and 0.34% respectively. EURCAD is up 0.20% trading between 1.4583 and 1.4654. GBPCAD is down 0.10% trading between 1.6216 and 1.6319. JPYCAD is unchanged trading between 0.01269 and 0.01274. Gold is up 0.35% trading between $1,261 and $1,274USD/oz., silver is up 0.77% trading between $17.56 and $17.79USD/oz., while oil is down 0.54% trading between $49.13 and $49.79.

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.