​VBCE Daily Foreign Exchange Update for Thursday, Nov. 3, 2016

USDCAD spot rate: 1.3380 - 1.3385 (as at 7:39am PST)










North America:




Technical Support / Resistance:









Key Economic Data Releases:

- U.S. non-mfg PMI 54.8 (56.0 exp.) 57.1 previous

- U.S. Factory orders .3% (.2% exp.) .4% previous

- U.S. Initial Jobless Claims 265k (258k exp.) 258k previous

Key Event Calendar:




Nov. 4

unemployment rate, trade balance

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

World stocks wallowed near a four-month low as U.S. election uncertainty knocked the dollar, and futures pointed to the longest losing streak for the S&P 500 since the 2008 financial crisis. Investors were unsettled by media reports that some agents at the FBI had wanted to press ahead with an investigation of the Clinton Foundation, the latest twist in a long-running investigation into Democratic candidate Hillary Clinton's use of a private e-mail server while she was secretary of state. Investors generally view Clinton as a known quantity, but there is deep uncertainty about what a win for Republican Donald Trump – who is closing the gap in some polls – might mean for U.S. economic policy, free trade and geopolitics. The volatility index, also known as markets' fear gauge, rose for an eighth straight day for its longest steak in three years, and is just one day from a record run. The dollar slipped 0.4 per cent to 102.83 yen, while the euro edged up 0.1 per cent to $1.1098. A weaker dollar weakness meant sterling was slightly firmer ahead of UK High Court ruling on whether the government or parliament has the right to trigger the Article 50 Brexit clause to leave the European Union. The Bank of England's policy decision and inflation report were also ahead.

The dollar also added 0.4 per cent on the Mexican peso , which acts as something of a proxy for investor angst over the risk of a Trump victory. Trump's positions on Mexican migration and trade could severely disadvantage the United States' southern neighbour if he wins. Currently, the TSX is up 0.29% and the Dow is up 0.11%. EURCAD is down 0.29% trading between 1.4804 and 1.4895. GBPCAD is up 1.20% trading between 1.6465 and 1.6728. JPYCAD is up 0.09% trading between 0.01295 and 0.01303. Gold is down 0.35% trading between $1,285 and $1,307USD/oz., silver is up 1.37% trading between $18.01 and $18.64USD/oz., while oil is down 0.55% trading between $45.23 and $45.88.

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


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