​VBCE Daily Foreign Exchange Update for Tuesday, Nov. 22, 2016

USDCAD spot rate: 1.3400 - 1.3405 (as at7:31am 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

1.3315

1.3375

1.3435

1.3588

Key Economic Data Releases:

- Canada Retail Sales .6% (.6% exp.) .1% previous

- US Existing Home Sales 5.6M (5.43M exp.) 5.49M previous

Key Event Calendar:

Date

Canada

U.S.A.

Nov. 23

Nov. 24

Nov. 25

Existing home sales

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

Thanksgiving Day

Services PMI

World stocks on Tuesday rode the slipstream of the first joint all-time high for Wall Street's four main markets since 1999, while oil prices hit their highest level since October. A powerful earthquake hitting the same part of Japan that suffered a nuclear disaster in 2011 nudged up the safe-haven yen earlier in the day but has slipped back in the North American session. The US dollar slipped off a six-month high as the rally in oil and metals prices also drove up commodities-linked currencies such as the Australian dollar. Asia's top horses had made solid gains overnight despite the clearest signal yet from U.S. President-elect Donald Trump that he will shake up trade with the region. Europe's main bourses were quickly on the front foot too with London's FTSE, Frankfurt's DAX and the CAC 40 in Paris up between 0.6 – 0.8 per cent in early trade. The European basic resources index, which has now doubled from its January lows, was the best performing sector as big names Anglo American, BHP Billiton and Antofagasta jumped 4 to 5 per cent. Stocks are benefitting from a belief that Trump spending policies will spur growth. The fact Trump was elected means it is now seen as certain that there will be a rise in inflation and that the (Federal reserve) is going to hike rates. Some of his strategies are really pro growth. Currently, the TSX is up 0.15% and the Dow is up 0.27%. EURCAD is down 0.20% trading between 1.4214 and 1.4275. GBPCAD is down 0.59% trading between 1.6612 and 1.6771. JPYCAD is down 0.25% trading between 0.01206 and 0.01214. Gold is down 0.40% trading between $1,209 and $1,221USD/oz., silver is up 0.15% trading between $16.57 and $16.89USD/oz., while oil is down .51% trading between $47.77 and $49.17.

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.