​VBCE Daily Foreign Exchange Update for Friday, June 24, 2016

USDCAD spot rate: 1.2905 - 1.2910 (as at 7:56am PST)

Ranges:

Asia:

1.2713

to

1.3099

Europe:

1.2997

to

1.3080

North America:

1.2896

to

1.2997

Technical Support / Resistance:

S2

S1

R1

R2

1.2713

1.2896

1.3100

1.3200

Key Economic Data Releases:

- U.K. Brexit vote: Leave 51.9% / Remain 48.1%

- U.S. durable goods orders: -2.2% (exp. -0.5%) Core: -0.3% (exp. 0.2%)

- U.S. consumer sentiment index: 93.5 (exp. 94.0)

Key Event Calendar:

Date

Canada

U.S.A.

June 27

June 28

June 29

June 30

July 1

GDP (April)

Canada Day

Goods trade balance, services PMI

GDP Q1, consumer confidence

PCE price index, pending home sales, oil inventories

Chicago PMI

Yesterday, USDCAD initially dropped from 1.2825 down to 1.2680 on positive market sentiment and stronger oil prices before bouncing back towards 1.2790 in late North American trade. The USD and JPY were the worst performing currencies as the GBP outperformed as markets anticipated a win by the "remain" side. Over the past two weeks, GBPCAD has climbed steadily after nearing a 2 year low of 1.8160 in anticipation the "Remain" vote would prevail. The USD and JPY remained under pressure in early Asian trade with USDCAD falling to 1.2713 and GBPUSD trading from 1.47 up to 1.50, its highest level in 6 months. The early strength quickly reversed as Brexit results trickled in. Momentum was quickly building for the "Leave" camp and risk aversion flows took over. Massive forex and market moves saw GBPUSD plunge from 1.50 to 1.3230, a 30 year low. USDCAD climbed to 1.3100 as oil prices and equity markets dropped 5%+. Correction flows have since dominated the London and North American sessions with GBPUSD bouncing to 1.37 and USDCAD easing to 1.2896. Currently, the TSX and the DJIA are down 1.35% and 2.5% respectively. EURCAD is down 1.50% trading between 1.4253 and 1.4580. GBPCAD is down 8% trading between 1.7259 and 1.9128. JPYCAD is up 6.5% trading between 0.01194 and 0.01304. Gold is up 4% trading between $1,250 and $1,358USD/oz., silver is up 2.50% trading between $17.15 and $18.32USD/oz., while oil is down 4% trading between $46.74 and $50.42.

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.