Daily foreign exchange rates for our top 10 currencies & Update #forex #Vancouver May 12, 2017

USDCAD spot rate: 1.3700 - 1.3705 (as at 7:13am PST)

Technical Support / Resistance:

Key Economic Data Releases:

- U.S. retail sales: 0.4% (exp 0.6% / prev 0.1%) Core: 0.3% (exp 0.5% / prev 0.3%)

- U.S. CPI m/m: 0.2% (exp 0.2% / prev -0.3%) y/y: 2.2% (exp. 2.3% / prev 2.4%)

- U.S. Core CPI m/m: 0.1% (exp 0.2% / prev -0.1%) y/y: 1.9% (exp 2.0% / prev 2.0%)

- U.S. consumer sentiment index: 97.7 (exp 97.0 / prev 97.0)

Key Event Calendar:

Yesterday, USDCAD was exceptionally volatile initially trading from 1.3668 up to 1.3740 before falling back to 1.3690. This was followed by a quick spike up to 1.3770 in early North American trade (perhaps due to the earlier reported story about Moody's Investor Service downgrading the credit ratings of the Big 6 Canadian banks). The move was short-lived with USDCAD subsequently declining to 1.3680 and holding near 1.3690 for the balance of the session. In early trade this morning, USDCAD rallied to 1.3742 before falling to 1.3720 ahead of the U.S. retail sales and inflation data. Both data sets were worse than expected sending USDCAD down to 1.3665 on broad-based USD weakness. Probabilities of a June interest rate hike fell from 83% to 73% accordingly after the U.S. inflation data missed estimates for the 2^nd consecutive month. With oil prices starting to drift lower, USDCAD has since bounced back towards the 1.3715 level. Currently, the TSX is up 0.28% while the DJIA is down 0.16%. EURCAD is up 0.50% trading between 1.4871 and 1.4972. GBPCAD is up 0.40% trading between 1.7604 and 1.7670. JPYCAD is up 0.50% trading between 0.01203 and 0.01209. Gold is up 0.50% trading between $1,224 and $1,232USD/oz., silver is up 1% trading between $16.30 and $16.48USD/oz., while oil is unchanged trading between $47.65 and $48.05.

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