VBCE Daily Foreign Exchange Update for Friday, Dec. 16, 2016

USDCAD spot rate: 1.3375 - 1.3380 (as at 7:33am PST)

Technical Support / Resistance:

Key Economic Data Releases:

- Foreign securities purchases: $15.75 billion (exp. $12.35 billion / prev. $11.79 billion)

- Foreign securities purchases by Canadians: $2.14 billion (prev. 1.82 billion)

- U.S. building permits: 1.201 million (exp. 1.24 million / prev. 1.26 million)

- U.S. housing starts: 1.09 million (exp. 1.23 million / prev. 1.34 million)

Key Event Calendar:

Yesterday, USDCAD traded from 1.3265 up to 1.3417 – its highest level this month. The move above 1.34 was short-lived as the pairing would ease to 1.3345 in late trade on the back of positive market sentiment. Overnight, USDCAD dropped to 1.3317 before bouncing higher and extending to 1.3392 this morning. The pairing has since eased lower to 1.3360 as oil prices and equity markets continue to trend higher. The DJIA is now within 100 pts of the key psychological 20,000 level. Since Wednesday's U.S. Fed interest rate hike, the USD has been the best performing currency with USDCAD surging from a 2 month low of 1.3080 up to a two week high of 1.3417. Next week, U.S. 3^rd quarter GDP along with Canadian CPI, retail sales, and GDP present the event risk. Currently, the TSX and the DJIA are up 0.43% and 0.26% respectively. EURCAD is up 0.35% trading between 1.3883 and 1.3981. GBPCAD is up 0.50% trading between 1.6518 and 1.6655. JPYCAD is up 0.35% trading between 0.01127 and 0.01132. Gold is up 0.34% trading between $1,126 and $1,136USD/oz., silver is up 0.73% trading between $15.94 and $16.27USD/oz., while oil is up 1.50% trading between $50.53 and $51.70.

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