​VBCE Daily Foreign Exchange Update for Monday, June 06, 2016

USDCAD spot rate: 1.2860 - 1.2865 (as at 9:20am PST)

Ranges:

Asia:

1.2944

to

1.2978

Europe:

1.2920

to

1.2977

North America:

1.2839

to

1.2920

Technical Support / Resistance:

S2

S1

R1

R2

1.2531

1.2725

1.3095

1.3125

Key Economic Data Releases:

- No data release

Key Event Calendar:

Date

Canada

U.S.A.

June 7

June 8

June 9

June 10

Ivey Purchasing Managers Index

Housing starts, Building Permits

Cap. Utilization Q1, New Housing Price Index

Unemployment rate, Net change in employment

Non-Farm Productivity

Initial Jobless Claims, Wholesale Inventories

Michigan Consumer Sentiment Index

Early shocker to the FX markets was the GBP dropping to a 3 week low after 2 opinion polls over the weekend showed the "leave" campaign ahead in the EU referendum. This is a complete reversal of all previous polls that we have seen to date. Trader and market operators around the world are preparing for the decision which will be held June 23. The main remaining event risk to FX markets today is Fed Chair Yellen's speech in Philadelphia coming up shortly. Economists see Yellen sticking to a non-committal line on the rate hike, but after Friday's terrible job report there are doubts in the markets of any rate increase in the near future. Currently, the TSX is up 0.42% while the DJIA is up 0.65%. EURCAD is down 0.55% trading between 1.4574 and 1.4729. GBPCAD is down 1.0055% trading between 1.8548 and 1.8782. JPYCAD is down 1.4118% trading between 0.01196 and 0.01216 Gold is up 0.16% trading between $1,240 and $1,248USD/oz., silver is up 0.35% trading between $16.36 and $16.53USD/oz., while oil is up 1.79% trading between $48.74 and $49.87.

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

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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.