​VBCE Daily Foreign Exchange Update for Thursday, Nov.17, 2016

USDCAD spot rate: 1.3415 - 1.3420 (as at 7:25am PST)

Ranges:

Asia:

1.3419

to

1.3442

Europe:

1.3400

to

1.3450

North America:

1.3405

to

1.3448

Technical Support / Resistance:

S2

S1

R1

R2

1.3360

1.3400

1.3455

1.3550

Key Economic Data Releases:

- US Building Permits 1.229 M (1.200M exp.) 1.225M previous

- US Housing Starts 1.323M (10151 exp.) 1.054M previous

- US Initial Jobless Claims 235k (257K exp.) 254k previous

Key Event Calendar:

Date

Canada

U.S.A.

Nov. 18

Consumer price index

Battered bonds and emerging market currencies enjoyed some respite on Thursday as the dollar took a breather from a post-U.S. election charge that has taken it to a 13-1/2 year high. Europe's main stock markets saw a subdued start as the dip in benchmark bond yields knocked banking stocks that have rallied since the rebound in yields has fuelled optimism about lending profits. The dollar's drop against other top world currencies was a modest 0.3 per cent but marked a change of direction after eight days of back-to-back gains that have seen it jump almost 4 per cent. The momentum of the Trump rally (in bond yields and the dollar) has faded a bit so we are all trying to recover. Investors were trying to get a handle on what U.S. President-elect Donald Trump is likely to do when he takes office in January, as well as position for what now looks almost certain to be a U.S. interest rate rise next month. Later today Fed chair Janet Yellen gives a speech and the market will be watching her words closely. If there are no negative surprises then it is assumed to be a 100% probability that The US will hike interest rates in December according to all reports. Currently, the TSX is up 0.71% and the Dow is down 0.04%. EURCAD is down 0.19% trading between 1.4340 and 1.4410. GBPCAD is down 0.12% trading between 1.6669 and 1.6777. JPYCAD is down 0.29% trading between 0.01226 and 0.01236. Gold is up 0.14% trading between $1,222 and $1,231USD/oz., silver is up 0.01% trading between $16.89 and $17.09USD/oz., while oil is up 1.45% trading between $45.31 and $46.55.

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.