VBCE Daily Foreign Exchange Update for Friday, Dec. 2, 2016

USDCAD spot rate: 1.3290 - 1.3295 (as at 7:39am PST)

Ranges:

Asia:

1.3284

to

1.3316

Europe:

1.3295

to

1.3319

North America:

1.3256

to

1.3318

Technical Support / Resistance:

S2

S1

R1

R2

1.3200

1.3256

1.3340

1.3440

Key Economic Data Releases:

- Canada net employment change: 10,700 (exp. -20,000 / prev. 43,900)

- Canada unemployment rate: 6.8% (exp. 7.0% / prev. 7.0%)

- U.S. non-farm payrolls: 178,000 (exp. 175,000 / prev. 142,000)

- U.S. unemployment rate: 4.6% (exp. 4.9% / prev. 4.9%)

- U.S. average hourly earnings: -0.1% (exp. 0.2% / prev. 0.4%)

Key Event Calendar:

Date

Canada

U.S.A.

Dec. 5

Nov. 6

Nov. 7

Dec. 8

Dec. 9

Trade balance, Ivey PMI

Bank of Canada interest rate

Housing starts, building permits

ISM non-manufacturing PMI

Trade balance, factory orders

Consumer sentiment index

Yesterday, USDCAD traded from 1.3440 down to 1.3300 before bouncing to hold a 1.3310 – 1.3335 range for the balance of the day. The CAD was the best performing currency driven higher by a two day 15% surge in oil prices. The pairing dropped to 1.3256, the lowest level since October 21st after the 5:30am release of both Canadian and U.S. employment data. Both data sets were mixed but the initial reaction was broad-based USD weakness followed by a recovery which took USDCAD back up to 1.3315. The U.S. unemployment rate dropped to a 9 year low but wage inflation data was soft. Canada surprised markets with another month of job gains but these were entirely part-time. (8,700 full time jobs were lost on top of the 23,100 full time jobs lost in October) The unemployment rate ticked down by 0.2% but this was offset by a 0.2% decline in the participation rate. USDCAD has since dropped back to 1.3267 where it has found some support and is currently holding in a 1.3280 – 1.3300 range. Currently, the TSX is up 0.19% while the DJIA is down 0.16%. EURCAD is down 0.15% trading between 1.4130 and 1.4230. GBPCAD is up 0.30% trading between 1.6723 and 1.6837. JPYCAD is up 0.40% trading between 0.01166 and 0.01171. Gold is up 0.76% trading between $1,166 and $1,178USD/oz., silver is up 1.80% trading between $16.33 and $16.77USD/oz., while oil is up 0.18% trading between $50.21 and $51.40.

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.