USDCAD spot rate: 1.2500 - 1.2505 (as at 7:58am PST)
Technical Support / Resistance:
Key Economic Data Releases:
- Canada raw material product price m/m: -0.6% (exp -2.5% / prev -3.6%)
- Canada industrial product price m/m: -1.5% (exp -0.2% / prev -1.1%)
- U.S. consumer confidence: 122.9 (exp 120.3 / prev 120.0)
Key Event Calendar:
Date Canada U.S.A.
Aug 30
Aug 31
Sept 1
Current account Q2
GDP (June) / Q2 annualized
RBC manufacturing PMI
ADP employment change, GDP Q2
PCE price index, personal income/spending,
Chicago PMI, pending home sales
Non-farm payrolls, unemployment rate, avg. hourly
earnings, ISM manufacturing, consumer sentiment
Yesterday, the CAD was the worst performing currency during the North American trading session.
USDCAD initially moved lower from 1.2497 down to 1.2442, just shy of the late July / 26 month low of
1.2413 before climbing back towards 1.2475 where the pairing remained for much of the session. Reports
of North Korea firing 3 missiles over Northern Japan in the afternoon saw the JPY climb ½% across the
board on risk aversion flows. USDCAD jumped briefly to 1.2530/35 on the reports. While global equity
indexes remained under pressure overnight, USDCAD dropped to test yesterday's lows near 1.2442 on
broad-based USD weakness. The EURUSD rate climbed above the 1.20 mark for the first time since
January of 2015 while gold prices surged to $1,326 - the highest in 11 months. North American markets
have pared earlier losses while oil prices continue to slide this morning. USDCAD climbed back to 1.2507
before easing to hold a 1.2490 – 1.2505 range for the past 90 minutes. U.S. 10 year yields are down to
2.09% - near the lowest level since Nov. 2016 while the USD index (DXY) continues to hold near a 26
month low. Currently, the TSX and the DJIA are down 0.50% and 0.08% respectively. EURCAD is up
0.50% trading between 1.4959 and 1.5046. GBPCAD is up 0.50% trading between 1.6125 and 1.6199.
JPYCAD is up 1.2% trading between 0.01146 and 0.01151. Gold is up 0.68% trading between $1,313 and
$1,326USD/oz., silver is up 0.57% trading between $17.40 and $17.66USD/oz., while oil is down 0.40%
trading between $46.03 and $46.95.
Sources: Reuters, Bloomberg, FXStreet, RBC Capital Markets, Bank of Canada, U.S. Federal Reserve,
CNBC, Forexlive, CME Group