​VBCE Daily Foreign Exchange Update for Tuesday, May 31, 2016

USDCAD spot rate: 1.3075 - 1.3080 (as at 7:47am PST)

Ranges:

Asia:

1.3030

to

1.3078

Europe:

1.3017

to

1.3058

North America:

1.3035

to

1.3089

Technical Support / Resistance:

S2

S1

R1

R2

1.2970

1.3034

1.3100

1.3188

Key Economic Data Releases:

- Canada GDP (March): -0.2% (exp. -0.1%) Q1 annualized: 2.4% (exp. 2.8%)

- U.S. core personal consumption expenditure: 1.6% (exp. 1.6%)

- U.S. Case Shiller house price index: 5.43% (exp. 5.11%)

- U.S. Chicago purchasing managers index: 49.3 (exp. 50.5)

- U.S. consumer confidence: 92.6 (exp. 96.3)

- U.S. personal income: 0.4% (exp. 0.4%) spending: 1.0% (exp. 0.7%)

Key Event Calendar:

Date

Canada

U.S.A.

June 1

June 2

June 3

RBC manufacturing PMI

Trade balance

ADP employment change, ISM mfg. PMI

Crude oil inventories

Non-farm payrolls, unemployment rate, avg. hourly earnings, trade balance, ISM non-mfg

Yesterday, USDCAD climbed from 1.3018 up to 1.3095 before falling back towards 1.3034 to start the North American session. U.S. markets were closed and after a brief bounce to 1.3078, the pairing would ease lower to finish the day near 1.3035. USDCAD would move higher in late Asian trade testing yesterday's North American session high before easing lower to session lows in London trade. Canadian GDP was weaker than expected and included negative revisions to prior data sending USDCAD from 1.3035 up to session highs at 1.3089. With oil prices testing the $50 level, USDCAD dropped back to 1.3036 but the down move was short-lived. The pairing has since bounced back to challenge session highs again. The next major release comes Friday with U.S. jobs data. The unemployment rate is expected to tick down from 5.0% to 4.9%. Job gains should remain steady around the 162,000 level. Currently, the TSX is up 0.47% while the DJIA is down 0.05%. EURCAD is up 0.30% trading between 1.4500 and 1.4605. GBPCAD is down 0.30% trading between 1.9033 and 1.9170. JPYCAD is up 0.26% trading between 0.01170 and 0.01179. Gold is up 0.10% trading between $1,205 and $1,216USD/oz., silver is down 1.1% trading between $15.98 and $16.16USD/oz., while oil is up 1% trading between $49.35 and $50.08.

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

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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.