​VBCE Daily Foreign Exchange Update for Wednesday, Dec. 14, 2016

USDCAD spot rate: 1.3102 - 1.3107 (as at 8:30am PST)

Ranges:

Asia:

1.3109

to

1.3140

Europe:

1.3092

to

1.3121

North America:

1.3090

to

1.3124

Technical Support / Resistance:

S2

S1

R1

R2

1.3040

1.3080

1.3153

1.3230

Key Economic Data Releases:

-U.S. retail sales: -0.1% (exp. 0.3% / prev. 0.6%)

-U.S. producer price index: 0.4% (exp. 0.1% / prev. 0.0%)

-U.S. industrial production: -0.4% (exp. -0.2% / prev. 0.1%)

-U.S. Fed interest rate decision 11am

Key Event Calendar:

Date

Canada

U.S.A.

Dec. 15

Dec. 16

Manufacturing sales

Net foreign securities trans.

CPI, current acct., Philly Fed manufacturing

Building permits, housing starts

At 11am the Federal Reserve will announce what's expected to be the first rate hike of 2016. With every economist surveyed calling for a 25 basis-point hike, attention is likely to focus on Chair Janet Yellen's post-decision press conference at 11:30am, which is expected to be a dovish tone. While market-implied probabilities put the chance of an increase at 100%, they also imply an 8% possibility of a 50 basis-point increase. Investors will be keen to see how policy makers change their 2017 forecasts. The so-called dot plot graphic which contains rate forecasts of each of the 17 officials on the policy-setting Federal Open Market Committee, will give an early glimpse of their thinking about next steps. When the dots were last updated in September, the median projection, shared by 9 of the 17 central bankers, called for 2 rate increases next year. That's a far cry from December 2015, when the median FOMC forecast was for 4 hikes this year and another 4 next. They cut those projections throughout 2016 amid financial-market turmoil, concerns about global growth and low inflation expectations. Currently, the TSX is down 0.38% and the Dow is down 0.19%. EURCAD is up 0.02% trading between 1.3925 and 1.3985. GBPCAD is up 0.07% trading between 1.6566 and 1.6674. JPYCAD is down 0.08% trading between 0.01138 and 0.01141. Gold is up 0.48% trading between $1,157 and $1,165USD/oz., silver is up 1.35% trading between $16.89 and $17.19USD/oz., while oil is up 0.07% trading between $51.87 and $52.75.

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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.