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

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

Ranges:

Asia:

1.3320

to

1.3347

Europe:

1.3317

to

1.3368

North America:

1.3355

to

1.3392

Technical Support / Resistance:

S2

S1

R1

R2

1.3265

1.3317

1.3417

1.3495

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:

Date

Canada

U.S.A.

Dec. 19

Dec. 20

Dec. 21

Dec. 22

Dec. 23

Wholesale sales

CPI, retail sales

GDP

Services PMI

Existing home sales, crude oil inventories

Durable goods, GDP Q3, pers. Income / spending

Consumer sentiment, new home sales

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. 3rd 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

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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.