Daily foreign exchange rates for our top 10 currencies & Update #forex #Vancouver August 11, 2017

USDCAD spot rate: 1.2680 - 1.2685 (as at 8:02am PST)

Ranges:

Asia:

1.2728

to

1.2753

Europe:

1.2721

to

1.2743

North America:

1.2653

to

1.2724

Technical Support / Resistance:

S2

S1

R1

R2

1.2600

1.2650

1.2750

1.2770

Key Economic Data Releases:

- U.S. CPI m/m: 0.1% (exp 0.2% / prev 0%) y/y: 1.7% (exp 1.8% / prev 1.6%)

- U.S. core CPI m/m: 0.1% (exp 0.2% / prev 0.1%) y/y: 1.7% (exp 1.7% / prev 1.7%)

Key Event Calendar:

Date

Canada

U.S.A.

Aug 14

Aug 15

Aug 16

Aug 17

Aug 18

Net foreign securities transactions

Manufacturing sales

CPI

Retail sales

Building permits, housing starts, FOMC min.

Industrial production, Philly Fed manufacturing

Consumer sentiment index

Yesterday, USDCAD initially climbed from 1.2695 up to 1.2735 before falling to 1.2670 on a combination of weak U.S. inflation data (producer prices index) and strong oil prices (near 2 month highs @ $50.20). Risk aversion flows then took over around 7:00am sending North American equity markets sharply lower and oil down nearly 4% to 48.37. USDCAD climbed all the way back – breaking above the intraday high of 1.2735 and extending gains up to 1.2740/45. Concerns over U.S. and North Korea continued overnight with global markets in negative territory for the 3rd straight day. Risk aversion flows saw the JPY rise to a 4 month high vs. the USD (and a 6 week high vs. the CAD) and pushed USDCAD up marginally to 1.2753 – a 1 month high. Risk aversion flows eased through the London session and into North American trade this morning and JPY flows completely reversed. U.S. inflation data (consumer price index) was weaker than expected for the 2nd straight day sending the USD broadly lower. USDCAD opened this morning's session near 1.2724 and dropped to 1.2653 – the low from Tuesday. The move lower was short-lived with USDCAD bouncing back to 1.2716 – the pre U.S. CPI level. The pairing has since declined to 1.2680 as oil prices rebound from session lows and U.S. equity markets move higher on the day. Currently, the TSX is down 0.37% while the DJIA is up 0.21%. EURCAD is down 0.25% trading between 1.4948 and 1.5008 – a 2 month high. GBPCAD is down 0.50% trading between 1.6435 and 1.6565. JPYCAD is down 0.50% trading between 0.01160 and 0.01169 – near a 6 week high. Gold is up 0.15% trading between $1,281 and $1,292USD/oz., silver is down 0.18% trading between $16.90 and $17.20USD/oz., while oil is down 0.50% trading between $48.02 and $48.67.

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

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