​VBCE Daily Foreign Exchange Update for Thursday, Dec. 1st, 2016


USDCAD spot rate: 1.3390 - 1.3395 (as at 8:28am PST)

Ranges:

Asia:

1.3379

to

1.3439

Europe:

1.3378

to

1.3434

North America:

1.3362

to

1.3396

Technical Support / Resistance:

S2

S1

R1

R2

1.3325

1.3360

1.3440

1.3495

Key Economic Data Releases:

- US ISM mfg. PMI 53.2 (52.2 exp.) 51.9 previous

- U.S. Initial Jobless Claims 268k (253K exp.) 251K previous)

- CAD mfg. PMI 51.5 51.1 previous

Key Event Calendar:

Date

Canada

U.S.A.

Dec. 2

Employment change , unemployment rate

Non-farm payrolls, unemployment rate, avg. hourly earnings

Oil swept to a six-week high on Thursday, lifting energy shares in its slipstream, after OPEC agreed to cut crude output to clear a glut, while bond yields rose on prospects that resulting inflationary pressures will lead to higher interest rates. European stocks slipped into the red, however, shrugging off the bounce in Asian shares and following Wall Street's slight decline the previous day instead. The Organization of the Petroleum Exporting Countries on Wednesday agreed to its first output cut since 2008, finally taking action after global oil prices fell by more than half in the last two years. Non-OPEC Russia will also join output reductions for the first time in 15 years. U.S. crude oil added to overnight gains of 9 per cent to reach $50.00 a barrel for the first time since October. Brent crude, which soared $4 overnight, touched a six-week peak of $52.73 a barrel. The jump in oil prices added to inflation expectations in the United States, which were already rising on prospects that president-elect Donald Trump would adopt reflationary policies using a large fiscal stimulus. Currently, the TSX is up 0.16% and the Dow is up 0.35%. EURCAD is down 0.37% trading between 1.4165 and 1.4270. GBPCAD is up 0.42% trading between 1.6765 and 1.6980. JPYCAD is down 0.53% trading between 0.01167 and 0.01175. Gold is down 0.893% trading between $1,161 and $1,177USD/oz., silver is down 0.59% trading between $16.27 and $16.59USD/oz., while oil is up 3.50% trading between $48.93 and $51.02.

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.