​VBCE Daily Foreign Exchange Update for Friday, Dec. 9, 2016

USDCAD spot rate: 1.3175 - 1.3180 (as at 7:40am PST)

Ranges:

Asia:

1.3184

to

1.3214

Europe:

1.3161

to

1.3194

North America:

1.3161

to

1.3189

Technical Support / Resistance:

S2

S1

R1

R2

1.3115

1.3161

1.3240

1.3340

Key Economic Data Releases:

- U.S. consumer sentiment index: 98.0 (exp. 94.5 / prev. 93.8)

Key Event Calendar:

Date

Canada

U.S.A.

Dec. 12

Dec. 13

Dec. 14

Dec. 15

Dec. 16

Manufacturing sales

Net foreign securities trans.

Imp. / exp. price index

Retail sales, producer price index, industrial production, Fed interest rate decision

CPI, current acct., Philly Fed manufacturing

Building permits, housing starts

Yesterday, USDCAD traded from 1.3240 down to 1.3200 before bouncing to 1.3252. The pairing then eased lower during the North American session reaching a 6 week of 1.3185/90 close to the 100 day moving average. After a brief foray above 1.32 during the Asian session, positive risk sentiment continued overnight sending USDCAD down to 1.3161, its lowest level in nearly two months. The pairing moved back up to the 100 day MA before testing the 1.3161 level again in early North American trade. Given the extreme positive market sentiment since the U.S. Presidential election, the CAD has been the best preforming currency behind the GBP. The EUR and the JPY have seen rapid declines falling to 18 month and 7 month lows vs. the CAD respectively. U.S. markets (DJIA, S&P, and the NASDAQ) are up again this morning trading at all-time highs. USDCAD has since held steady in a 1.3170 – 1.3189 range. The markets will now turn its focus to next Wednesday's U.S. Fed announcement. A 25 basis point interest rate hike is virtually certain now priced at a probability of 97.2%. Currently, the TSX and the DJIA are up 0.17% and 0.23% respectively. EURCAD is down 0.80% trading between 1.3894 and 1.4023. GBPCAD is down 0.15% trading between 1.6557 and 1.6637. JPYCAD is down 1.20% trading between 0.01144 and 0.01157. Gold is down 0.75% trading between $1,164 and $1,172USD/oz., silver is down 0.65% trading between $16.90 and $17.12USD/oz., while oil is up 1.25% trading between $50.89 and $51.61.

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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.