VBCE Daily FX Report July 5 2016

USDCAD spot rate: 1.2965 - 1.2970 (as at 7:35am PST)

Ranges:

Asia:

1.2878

to

1.2913

Europe:

1.2857

to

1.2889

North America:

1.2842

to

1.2868

Technical Support / Resistance:

S2

S1

R1

R2

1.2704

1.2764

1.2916

1.3082

Key Economic Data Releases:

- No Major North American Releases

Key Event Calendar:

Date Canada USA

July 6

Imports, exports, trade balance

Goods trade balance, services PMI

July 7

Building permits, Ivey PMI

Employment change, jobless claims, oil

inventories

July 8

Employment change, participation

Unemployment rate, Nonfarm payrolls

rate, unemployment rate

North American Markets are rebalancing themselves after the holiday weekend. Investors pushed U.S. government bond yields to an all-time low and the yen sharply higher on Tuesday, as soft data from China added to worries about the impact of Britain's vote to leave the European Union. Commodities are getting hammered as a result.

A fresh wave of uncertainty is ripping through markets. Swiss bond yields turned negative all the way out to 50 years on bets that the world's major central banks will have to wade in with yet more stimulus. Currently, the TSX is down 0.51% while the Dow is down 0.65%. EURCAD is up 0.82% trading between 1.4315 and 1.4466. GBPCAD is down 0.66% trading between 1.6896 and 1.7095. JPYCAD is up 1.93% trading between 0.01253 and 0.01277. Gold is down 1.00% trading between $1,338 and $1,352USD/oz., silver is down 2.06% trading between $19.54 and $20.46 USD/oz., while oil is down 3.50% trading between $47.00 and $48.71USD/barrel

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.