​VBCE Daily Foreign Exchange Update for Tuesday, Dec. 06, 2016

USDCAD spot rate: 1.3290 - 1.3295 (as at8:20am PST)

Technical Support / Resistance:

Key Economic Data Releases:

- U.S. Trade Balance -42.60 B (-41.80B exp.) -36.20B previous

- Canada Ivy PMI 56.80 (60.0 exp.) 59.70 previous

Key Event Calendar:

The euro held firm on Tuesday, having seen a wild 3-cent swing in the wake of Italy's referendum, while the region's bond yields dipped in line with U.S. peers as oil saw its first fall for five days. Asian stocks saw their strongest day for 2 weeks overnight after Wall Street's Dow Jones index hit a record high, and Europe's main bourses struggled into positive territory as bumper German data helped settle an early wobble. Italy remained in focus with sources telling Reuters that precautionary state aid had been prepared for Banca Monte dei Paschi di Siena and as a crucial European Central Bank meeting on Thursday loomed.

Italian bond yields were back below levels seen before Sunday's referendum defeat for the government, while the euro held at $1.0767 having bounced strongly from as low as $1.0505 on Monday. Shares meanwhile rose on news that German industrial orders rose at their fastest pace for more than two years, stoking hopes that Europe's largest economy is set for an acceleration in the coming months. Oil prices snapped a four-day winning streak as data showed crude output rose in virtually every major export region and as it emerged that Saudi Arabia's Saudi Aramco would cut its prices to big Asian customers next month. It jarred with last week's first OPEC agreement since 2008 to cut output and sent Brent oil futures down 20 cents to $54.75 a barrel and U.S. crude down to $51.45.Currently, the TSX is up 0.091% while the Dow is down 0.12%. EURCAD is down 0.08% trading between 1.4232 and 1.4306. GBPCAD is up 0.32% trading between 1.6881 and 1.6985. JPYCAD is up 0.39% trading between 0.01162 and 0.01168. Gold is up 0.13% trading between $1,169 and $1,175USD/oz., silver is up 0.39% trading between $16.70 and $16.89USD/oz., while oil is down 0.95% trading between $50.31 and $51.57.

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