​VBCE Daily Foreign Exchange Update for Tuesday, Jan. 3rd, 2017

USDCAD spot rate: 1.3435 - 1.3440 (as at 7:30am PST)

Technical Support / Resistance:

Key Economic Data Releases:

- CAD Mfg PMI 51.8 51.50 previous

- USD mfg PMI 54.7 (53.5 exp.) 53.2 previous

Key Event Calendar:

Upbeat data from China helped lift global markets as 2017 trading started in earnest on Tuesday, with the dollar notching its biggest gain in three weeks, oil on a tear and European stocks setting a one-year high.

Base metal prices and bond yields also advanced, as the better-than-expected factory growth in China dovetailed with higher inflation data in Europe to give investors a solid start to the new year. Commodity-linked stocks jumped 1.3 per cent as oil and metals prices cheered the China data that had showed output from the country's giant manufacturing sector reaching a near six-year high. It bolstered the 'reflation' theme that dominated the latter stages of 2016 and helped get currency and bond markets back in their pre-break rhythm after a mixed recent run. The U.S. dollar racked up its biggest rise in almost three weeks against a basket of the world's other major currencies to leave it just 1 per cent off December's 14-year high. Currently, the TSX is up 1.06% and the DOW is up 0.81% . The EUR is down 1.00% trading between 1.3906 and 1.4079. GBP is down 0.52% trading between 1.6411 and 1.6538. JPYCAD is down 0.32% trading between 0.01134 and 0.01146. Gold is down 0.22% trading between $1,146 and $1,158USD/oz., silver is up 0.15% trading between $15.89 and $16.14USD/oz., while oil is up 2.01% trading between $53.85 and $55.21.