​VBCE Daily Foreign Exchange Update for Friday, June 10, 2016

USDCAD spot rate: 1.2710 - 1.2715 (as at 7:11am PST)

Ranges:

Asia:

1.2716

to

1.2746

Europe:

1.2726

to

1.2760

North America:

1.2661

to

1.2755

Technical Support / Resistance:

S2

S1

R1

R2

1.2615

1.2654

1.2784

1.2915

Key Economic Data Releases:

- Canada net employment change: 13,800 (exp. 3,800 / prev. -2,100)

- Canada unemployment rate: 6.9% (exp. 7.1% / prev. 7.1%)

- Canada participation rate: 65.7% (exp. 65.8% / prev. 65.8%)

- U.S. Michigan consumer sentiment index: 94.3 (exp. 94.0)

Key Event Calendar:

Date

Canada

U.S.A.

June 13

June 14

June 15

June 16

June 17

Manufacturing sales

Consumer price index

Retail sales

Producer price index, industrial production, crude oil inventories, Fed interest rate and economic projections

CPI, Philly Fed manufacturing index

Housing starts, building permits

Yesterday, USDCAD climbed from 1.2671 up to 1.2767 before falling back to hold a 1.2710 – 1.2740 range for the balance of the session. Global equity markets and oil prices turned lower while Bank of Canada governor Poloz offered up some dovish comments reiterating that the Alberta fires pose significant near term risk for growth and that Canada's export recovery has been uneven and has not translated into stronger investment spending. Overnight, the USD and the JPY were the best performing currencies on risk aversion flows and lower oil prices. USDCAD climbed to 1.2760 before the 5:30am release of the Canadian jobs data. Job creation was better than expected with a notable increase in full time jobs (+60,500) sending USDCAD down to 1.2661, just shy of Wednesday's low of 1.2654. With the USD still experiencing broad strength due to risk aversion flows and lower oil prices, the CAD gains were short-lived as the pairing has since bounced back towards 1.2735. Currently, the TSX and the DJIA are both down by about 0.75%. EURCAD is down 0.20% trading between 1.4320 and 1.4423. GBPCAD is down 0.80% trading between 1.8209 and 1.8429. JPYCAD is unchanged trading between 0.01186 and 0.01194. Gold is up 0.42% trading between $1,264 and $1,277USD/oz., silver is up 0.36% trading between $17.16 and $17.37USD/oz., while oil is down 2% trading between $49.56 and $50.70.

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

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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.