VBCE Daily Foreign Exchange Update for Wednesday, Nov.9, 2016


USDCAD spot rate: 1.3460 - 1.3465 (as at 7:20am PST)

Ranges:

Asia:

1.3265

to

1.3524

Europe:

1.3367

to

1.3453

North America:

1.3411

to

1.3471

Technical Support / Resistance:

S2

S1

R1

R2

1.3355

1.3420

1.3525

1.3565

Key Economic Data Releases:

- EIA crude oil stocks change - 2.432 M draw (1.33M Build exp.) +14.42M build prev.

Key Event Calendar:

Date

Canada

U.S.A.

Nov. 10

Nov. 11

New housing price index

Remembrance Day

Initial jobless claims

Veterans Day

The U.S. dollar, Mexican peso and world stocks began to steady in the European morning on Wednesday, having been hammered overnight as Donald Trump swept to victory in the U.S. presidential election.

European shares were down less than 1 per cent and investors were returning to other markets that had been sent into a tailspin as it became clear the Trump was set for a dramatic victory over heavily-favoured Democrat Hillary Clinton. Investors fear a Trump victory could cause global economic and trade turmoil and years of policy unpredictability, which among other things will discourage the Federal Reserve from raising interest rates in December as long expected. Sovereign bonds, the Japanese yen and gold were all giving back ground having surged as the state results had come in overnight and also sent the Mexican peso into near free-fall as once again polls and betting markets proved woefully wrong. Trump's threats to rip up NAFTA and tax money sent home by migrants to pay for building a wall on the southern U.S. border have made the peso particularly reactive to events in the race for the White House. The mild reaction from European stocks was nowhere near as bad as futures markets had indicated and there were signs that the dollar, as well as other currencies and asset classes hit hard overnight, were beginning to level out. Currently, the TSX is up 0.29% and the Dow is up 0.04%. EURCAD is up 0.79% trading between 1.4587 and 1.5281. GBPCAD is up 1.46% trading between 1.6400 and 1.6966. JPYCAD is up 1.91% trading between 0.01256 and 0.01335. Gold is up 1.00% trading between $1,268 and $1337USD/oz., silver is up 1.51% trading between $18.29 and $18.99USD/oz., while oil is up 0.18% trading between $43.12 and $45.32.

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

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