VBCE Daily FX Report July 11th 2016

USDCAD spot rate: 1.3110 - 1.3115 (as at 8:38am PST)

Ranges:

Asia:

1.3036

to

1.3063

Europe:

1.3047

to

1.3096

North America:

1.3058

to

1.3115

Technical Support / Resistance:

S2

S1

R1

R2

1.2918

1.3014

1.3121

1.3200

Key Economic Data Releases:

- CAD Housing starts 218.3K (exp 192K) / 186.7K prev

Key Event Calendar:

Date Canada USA

July 12



Wholesale Inventories

July 13

Bank of Canada interest rate announcement
July 14New housing price indexPPI, initial jobless claims

July 15

Manufacturing shipments

CPI, Cap. Utilization, Business Inv.,Michigan Consumer sentiment


CAD is down against the USD today as we saw it break through 1.31, testing fresh July lows at levels last seen during the aftermath of the BREXIT vote late June. Downside risk is elevated as we consider the continued decline in oil prices and the impressive widening in the US-Canada yield spread. BOC interest rate decision is on Wednesday and it is expected that they will leave rates unchanged, but its language around the policy outlook will have to reflect headwinds for domestic growth that has emerged recently. TSX is up 1.01% while the Dow is up 0.63%. EURCAD is up 0.59% trading between 1.4377 and 1.4536. GBPCAD is up 0.81% trading between 1.6830 and 1.7045. JPYCAD is down 1.48% trading between 0.01272 and 0.01298. Gold is down 0.54% trading between $1,351 and $1,375USD/oz., silver is up 0.7% trading between $20.11 and $20.67 USD/oz., while oil is up 0.08% trading between $44.56 and $45.74USD/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.