VBCE Daily FX Report July 6th 2016

VBCE Daily Foreign Exchange Update for Wednesday, July 06, 2016

USDCAD spot rate: 1.3010 - 1.3015 (as at 8:43am PST)

Ranges:

Asia:

1.2986

to

1.3039

Europe:

1.2978

to

1.3014

North America:

1.3012

to

1.3048

Technical Support / Resistance:

S2

S1

R1

R2

1.2704

1.2764

1.3120

1.3188

Key Economic Data Releases:

-

Canada Imports (May) 44.40B

/ 44.77B prev

-

Canada Exports (May) 41.10B

/ 41.45B prev

-

Canada trade balance -3.28B (exp -2.70B) -3.32B prev

-

US trade balance

-41.14B (exp -40B) -37.38B prev

-US market services PMI 51.4 (exp 51.5) 51.3 prev

Key Event Calendar:

Date

Canada

U.S.A.

July 7

Building permits, Ivey PMI

Employment change, jobless claims, oil

inventories

July 8

Employment change, participation

Unemployment rate, Nonfarm payrolls

rate, unemployment rate

CAD is down slightly against the USD while gold has surged to a fresh 2 year high touching 1,375USD/oz. The GBP has tumbled to a 31 year low amid mounting evidence the BREXIT vote is hurting confidence in Britain's economy. A major real estate firm suspended a 4.4 billion-pound real estate fund Tuesday after a flurry of redemption requests. With the real estate tremors and fund suspensions echoing the start of the 2007 financial crisis, concern is building that failure to control the aftershocks of the referendum will propel the nation into a recession. Currently, the TSX is down 0.53% while the Dow is down 0.23%. EURCAD is up 0.42% trading between 1.4342 and 1.4455. GBPCAD is down 0.61% trading between 1.6700 and 1.6917. JPYCAD is up 1.15% trading between 0.01276 and 0.01296. Gold is up 0.91% trading between $1,355 and $1,375USD/oz., silver is up 0.81% trading between $19.86 and $20.50 USD/oz., while oil is down 0.68% trading between $45.96 and $46.89 USD/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.