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

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

Ranges:

Asia:

1.3390

to

1.3426

Europe:

1.3390

to

1.3500

North America:

1.3465

to

1.3505

Technical Support / Resistance:

S2

S1

R1

R2

1.3280

1.3320

1.3580

1.3630

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:

Date

Canada

U.S.A.

Nov. 11

Remembrance Day

Veterans Day

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.

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.