​VBCE Daily Foreign Exchange Update for Wednesday, Dec. 07, 2016

USDCAD spot rate: 1.3238 - 1.3243 (as at 8:30am PST)

Ranges:

Asia:

1.3273

to

1.3294

Europe:

1.3264

to

1.3290

North America:

1.3238

to

1.3296

Technical Support / Resistance:

S2

S1

R1

R2

1.3150

1.3200

1.3315

1.3369

Key Economic Data Releases:

- Bank of Canada interest rate decision: 0.5% (exp. 0.5% / prev. 0.5%)

Key Event Calendar:

Date

Canada

U.S.A.

Dec. 8

Dec. 9

Housing starts, building permits

Consumer sentiment index

The Bank of Canada announced today that it is maintaining its target for the overnight rate at 1/2 percent The Bank Rate is correspondingly ¾ percent and the deposit rate is ¼ percent. They stated that economic data suggest that global economic conditions have strengthened. However, uncertainty, which has been undermining business confidence and dampening investment in Canada's major trading partners, remains undiminished. Following the election in the United States, there has been a rapid back-up in global bonds yields, partly reflecting market anticipation of fiscal expansion in a US economy that is near full capacity. Canadian yields have risen significantly in this context. Total inflation has picked up but is slightly below expectations, largely due to lower food prices. Oil has fallen over 1% to $50.40 a barrel amid speculation a production boost from U.S. shale producers will counter the first output cuts from OPEC in eight years. U.S. stocks have struggled to add to a post-election rally that took major indexes to all-time highs in late November. Trumps comments have increasingly moved markets, after signaling his intention to push drug costs lower which came after recent tweets on United Technologies Corp. and Boeing Co. Currently, the TSX is up 0.31% while the Dow is up 0.05%. EURCAD is up 0.34% trading between 1.4210 and 1.4287. GBPCAD is down 0.61% trading between 1.6677 and 1.6840. JPYCAD is up 0.21% trading between 0.01162 and 0.01166. Gold is up 0.61% trading between $1,165 and $1,180USD/oz., silver is up 2.16% trading between $16.66 and $17.20USD/oz., while oil is down 1.07% trading between $49.84 and $51.17.

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.