​VBCE Daily Foreign Exchange Update for Friday, Jan. 6, 2017

USDCAD spot rate: 1.3208 - 1.3213 (as at 7:30am PST)

Ranges:

Asia:

1.3220

to

1.3268

Europe:

1.3238

to

1.3268

North America:

1.3177

to

1.3265

Technical Support / Resistance:

S2

S1

R1

R2

1.3080

1.3180

1.3270

1.3320

Key Economic Data Releases:

- Canada net employment change: 53,700 (exp -5,000 / prev 10,700)

- Canada unemployment rate: 6.9% (exp 6.9% / prev 6.8%)

- Canada trade balance: +$0.53 billion (exp -$1.60 billion / prev. -$1.02 billion)

- Canada Ivey PMI: 60.8 (prev 56.8)

- U.S. non-farm payrolls: 156,000 (exp 178,000 / prev 204,000)

- U.S. unemployment rate: 4.7% (exp 4.7% / prev 4.6%)

- U.S. average hourly earnings: 0.4% (exp 0.3% / prev -0.1%)

- U.S. trade balance: -$45.20 billion (exp -$42.50 billion / prev -$42.40 billion)

Key Event Calendar:

Date

Canada

U.S.A.

Jan. 9

Jan. 10

Jan. 11

Jan. 12

Jan. 13

Building permits

Housing starts

New housing price index

Producer price index, retail sales

Yesterday, USDCAD traded from 1.3280 down to 1.3252 before climbing to 1.3316. The pairing then plummeted to 1.3190 before easing back towards 1.3250 in late trade. USDCAD was holding near session highs this morning before falling to 1.3177 after the 5:30am jobs reports. Canada surprised the market with 81,300 full time job gains – the best in over 5 years, propelling the CAD to the top performer on the day. The U.S. data was pretty much as expected – the 22k headline miss was made up by the 26k revision to prior data. The USD also saw broad-gains as a sharp increase in wages supports rising inflation expectations / further interest rate hikes. This caused USDCAD to bounce to 1.3230. Canada also surprised the markets posting its first trade surplus in more than 2 years. USDCAD has tested 1.3180 level a 2nd time but has since regained the 1.3200 level. Currently, the TSX and the DJIA are relatively unchanged. EURCAD is down 0.60% trading between 1.3917 and 1.4054. GBPCAD is down 1% trading between 1.6236 and 1.6439. JPYCAD is down 1.30% trading between 0.01132 and 0.01148. Gold is down 0.40% trading between $1,172 and $1,183USD/oz., silver is down 0.67% trading between $16.29 and $16.67USD/oz., while oil is unchanged trading between $53.49 and $54.29.

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.