​VBCE Daily Foreign Exchange Update for Wednesday, Nov. 2, 2016

USDCAD spot rate: 1.3381 - 1.3386 (as at 8:39am PST)

Ranges:

Asia:

1.3371

to

1.3403

Europe:

1.3361

to

1.3398

North America:

1.3361

to

1.3423

Technical Support / Resistance:

S2

S1

R1

R2

1.3300

1.3341

1.3450

1.3500

Key Economic Data Releases:

- U.S. ADP employment: 147k (exp. 165k / prev. 202k )

- U.S. oil inventories: 14.42M (exp. 1.013M / prev. -0.53M)

- U.S. Fed interest rate decision 11am followed by statement

Key Event Calendar:

Date

Canada

U.S.A.

Nov. 3

Nov. 4

Employment change, Ivey PMI unemployment rate, trade balance

ISM non-mfg PMI, factory orders

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

The USD/CAD has moved higher on the back of a huge spike in crude inventories. Oil inventories were expected to be 1.013M, but shockingly came out well above at 14.42M, which sent the crude price down to $45. The Fed will announce its latest monetary policy decision today at 11am followed by a statement. Odds of a rate increase are very low with only a 15% chance. There continues to be election anxiety with polls tightening less than a week ahead of the vote. Uncertainty over the outcome is upsetting markets. A latest Bloomberg poll shows Clinton holds a slim 4 point advantage over Trump with Independents, who are finding themselves alienated from both major party candidates as well as both parties as they make their final choice. Currently, the TSX is down 0.59% and the Dow is down 0.23%. EURCAD is up 0.60% trading between 1.4793 and 1.4910. GBPCAD is up 0.61% trading between 1.6374 and 1.6526. JPYCAD is up 0.90% trading between 0.01285 and 0.01299. Gold is up 1.20% trading between $1,287 and $1,304USD/oz., silver is up 1.75% trading between $18.32 and $18.66USD/oz., while oil is down 2.75% trading between $45.04 and $46.44.

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.