VBCE Daily Foreign Exchange Update for Thursday, Nov.10, 2016

USDCAD spot rate: 1.3480 - 1.3485 (as at 8:15am PST)

Technical Support / Resistance:

Key Economic Data Releases:

- Canada new housing price index: 0.2% (exp. 0.2% / prev. 0.2%)

- U.S. initial jobless claims: 254k (exp. 260k / prev. 265k)

Key Event Calendar:

While the losing Democratic party faces tough questions after being roundly defeated this week, and triumphant Republicans look to a new era of political power, markets already seem to be adjusting. Banks, bonds and healthcare all had big moves yesterday as the winners and losers from the change of guard were sorted. On the streets of the U.S. there were protests as demonstrators declared they would refuse to accept the result. One of the first places the new administration's weight might be felt is at the Federal Reserve, which has expected by the vast majority of investors to hike rates at its December meeting. After initially falling to below 50%, the market-implied odds of a hike are back over 80% this morning, with Pimco warning that should Trump's policies prove inflationary, there may be a need for more rate rises over the medium term than previously forecast. Currently, the TSX is up 0.09% and the Dow is up 0.75%. EURCAD is up 0.28% trading between 1.4617 and 1.4704. GBPCAD is up 0.96% trading between 1.6621 and 1.6859. JPYCAD is down 0.30% trading between 0.01257 and 0.01275. Gold is down 0.70% trading between $1,263 and $1,292USD/oz., silver is up 0.54% trading between $18.40 and $18.98USD/oz., while oil is down 1.02% trading between $44.45 and $45.61.