​VBCE Daily Foreign Exchange Update for Monday, Jan. 9, 2017

USDCAD spot rate: 1.3215 - 1.3220 (as at 8:08am PST)

Ranges:

Asia:

1.3226

to

1.3271

Europe:

1.3228

to

1.3277

North America:

1.3207

to

1.3262

Technical Support / Resistance:

S2

S1

R1

R2

1.3150

1.3200

1.3304

1.3360

Key Economic Data Releases:

- No data releases

Key Event Calendar:

Date

Canada

U.S.A.

Jan. 10

Jan. 11

Jan. 12

Jan. 13

Building permits

Housing starts

New housing price index

Producer price index, retail sales

Stocks slumped while treasuries rose with gold as the new year rally in riskier assets faltered as uncertainty over the U.K.'s future trading role with Europe drove haven demand. US equities slipped from records, with the Dow Jones Industrial Average retreating toward 19,900. The yield on 10 year Treasury notes slid below 2.40%, while gold posted the first 2 day gain since the US election. Oil fell for the first time in four days. The British pound was trading 1.1% lower following comments over the weekend from Prime Minister Theresa May which stoked fears that the U.K will lose access to Europe's single market. In an interview with Sky News she said that regaining control of immigration and lawmaking are a greater priority than membership of the single market. With just over a year remaining on Janet Yellen's current term as chair of the Federal Reserve, comments from 3 of her potential successors at this weekend's annual American Economic Association meeting are noteworthy. Glenn Hubbard of Columbia University, along with Stanford University's John Taylor and Kevin Warsh, are all seen by Fed watchers as potential future chairs should President-elect Donald Trump decide not to re-nominate Yellen. All 3 criticized the US central bank for trying to do too much, and suggested interest rates would be higher if they were in charge. Currently, the TSX is down 0.60% and the DOW is down 0.26%. EURCAD is up 0.13% trading between 1.3915 and 1.3976. GBPCAD is down 1.05% trading between 1.6065 and 1.6261. JPYCAD is up 0.43% trading between 0.01128 and 0.01139. Gold is up 0.57% trading between $1,172 and $1,182USD/oz., silver is up 0.38% trading between $16.42 and $16.58USD/oz., while oil is down 2.07% trading between $52.51 and $53.80.

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.