Daily foreign exchange rates for our top 10 currencies & Update #forex #Vancouver August 18, 2017

USDCAD spot rate: 1.2590 - 1.2595 (as at 7:36am PST)

Ranges:

Asia:

1.2653

to

1.2693

Europe:

1.2632

to

1.2677

North America:

1.2574

to

1.2660

Technical Support / Resistance:

S2

S1

R1

R2

1.2550

1.2574

1.2693

1.2780

Key Economic Data Releases:

- Canada CPI m/m: 0.0% (exp 0.0% / prev -0.1%) y/y: 1.2% (exp 1.2% / prev 1.0%)

- Canada CPI common: 1.4% (prev 1.4%) Trim: 1.3% (prev 1.2%) Median: 1.7% (prev 1.6%)

- U.S. consumer sentiment index: 97.6 (exp 94.0 / prev 93.4)

Key Event Calendar:

Date

Canada

U.S.A.

Aug 21

Aug 22

Aug 23

Aug 24

Aug 25

Wholesale sales

Retail sales

House price index

Mfg / services PMI, new home sales, oil inventories

Jackson Hole Symposium, existing home sales

Jackson Hole Symposium, durable goods orders

Yesterday, USDCAD initially declined from 1.2625 down to 1.2588 –a 2 week low before climbing up to 1.2680 in late trade despite a 1.5% rise in oil prices. Just a day earlier USDCAD plunged from 1.2770 – a 1 month high – to 1.2608 despite a 2.5% drop in oil prices. The broad USD downtrend resumed overnight taking USDCAD down to 1.2632 before bouncing back to 1.2660 ahead of the 5:30am Canadian inflation data (CPI). Prices in Canada bounced back after falling the previous month reinforcing investor expectations for another rate hike by the Bank of Canada this year. The CAD has surged as a result with USDCAD breaking yesterday's low of 1.2588 and posting a new 2 week low of 1.2574. The pairing has since climbed back to test the 1.2600 level. Risk aversion flows ensuing from yesterday's market sell-off (DJIA lost 274 points – it's down about 50 pts so far this morning) have subsided today although the JPY has reached a 5 month high vs. the USD on broad-based USD weakness. Gold is above $1,300 – the best since November of 2016. Also, U.S. 10 year yields are down near 2.17% - also near the lowest level since Nov. 2016. Market expectations of a December Fed rate hike are now just 30%. Currently, the TSX and the DJIA are down 0.44% and 0.23% respectively. EURCAD is down 0.50% trading between 1.4770 and 1.4882. GBPCAD is down 0.70% trading between 1.6195 and 1.6339. JPYCAD is up 0.08% trading between 0.01155 and 0.01162 – near a 6 week high. Gold is up 0.50% trading between $1,285 and $1,301USD/oz., silver is up 0.16% trading between $16.92 and $17.32USD/oz., while oil is down 0.30% trading between $46.76 and $47.35.

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

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