VBCE Daily Foreign Exchange Update for Monday November 21, 2016

VBCE Daily Foreign Exchange Update for Monday, Nov. 21, 2016

USDCAD spot rate: 1.3401 - 1.3406 (as at 8:21am PST)

Ranges:

Asia:

1.3445

to

1.3513

Europe:

1.3424

to

1.3483

North America:

1.3387

to

1.3424

Technical Support / Resistance:

S2

S1

R1

R2

1.3365

1.3404

1.3533

1.3588

Key Economic Data Releases:

- Canada wholesale sales: -1.2% (exp. 0.4% / prev. 0.8%)

Key Event Calendar:

Date

Canada

U.S.A.

Nov. 22

Nov. 23

Nov. 24

Nov. 25

Retail sales

Existing home sales

Durable goods orders, Manufacturing PMI, consumer sentiment, new home sales, crude oil inventories

Thanksgiving Day

Services PMI

CAD is up a modest 0.7% from Friday's close, consolidating around the mid-point of its post-election range. U.S. stocks set the highest closing levels on record, led by energy companies, as oil jumped on optimism OPEC will agree to cut output. Both Iran & Iraq signaled that a deal could be agreed upon at next week's meeting in Vienna. Russian President Vladimir Putin said he sees no obstacles to an agreement, adding that Russia is willing to freeze production at current levels. The new milestone for the S&P 500 arrived as companies ended a five-quarter profit slump and Donald Trump's election fueled optimism that his plans to cut taxes and boost fiscal spending will benefit industries more geared toward economic growth. Acknowledging the strength of the economy, Federal Reserve Chair Janet Yellen said Thursday that the central bank is close to lifting interest rates, comments that sent Treasuries lower and yields on the 10-year note towards 2.25%. Traders are now pricing in a 98% chance of a move in December. If the Fed doesn't act as expected, it may bring on more market turmoil. Currently, the TSX is up 0.73% and the Dow is up 0.14%. EURCAD is down 0.46% trading between 1.4228 and 1.4335. GBPCAD is up 0.40% trading between 1.6569 and 1.6829. JPYCAD is down 0.75% trading between 0.01208 and 0.01218. Gold is up 0.60% trading between $1,205 and $1,217USD/oz., silver is up 0.52% trading between $16.54 and $16.76USD/oz., while oil is up 5.02% trading between $46.27 and $48.01.

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.