Daily foreign exchange rates for our top 10 currencies & Update #forex #Vancouver May 4, 2018

USDCAD spot rate: 1.2860 - 1.2865 (as at 7:51am PST)

Technical Support / Resistance:

Key Economic Data Releases:

- Canada Ivey PMI: 71.5 (exp 60.2 / prev 59.8)

- U.S. non-farm payroll: 164,000 (exp 192,000 / prev 135,000)

- U.S. unemployment rate: 3.9% (exp. 4.0% / prev 4.1%)

- U.S. average hourly earnings m/m: 0.1% (exp 0.2% / prev 0.2%) y/y: 2.6%(exp 2.7%/ prev2.6%)

Event Calendar:

Yesterday, USDCAD initially fell from 1.2883 down to 1.2817 before climbing to 1.2908. The main catalyst for the move higher was risk aversion flows as the DJIA initially declined 350+ points. The move quickly reversed with DJIA erasing its losses and finishing in positive territory. Oil prices also managed to bounce by 2.5% from earlier levels. The USD subsequently weakened sending USDCAD down to 1.2840 and the pairing held near 1.2850 for the balance of the session. Overnight, USDCAD climbed to 1.2881 ahead of the U.S. employment data. The results were softer than expected sending USDCAD quickly down to 1.2844. The move lower was short-lived as the pairing bounced back to 1.2870. This was followed by a quick move through 1.29 but the move stalled at 1.2912/17 – the fifth failure over the past 8 days. Canadian Ivey PMI data (economic conditions in Canada – a reading above 50 signals growth) came in much stronger than expected sending USDCAD back down to 1.2850. Oil prices continue to gain near 3.5 year highs while U.S. 10 year yields have fallen to 2.92% - a 2 week low. Currently, the TSX and the DJIA are up 0.32% and 0.81% respectively. EURCAD is down 0.25% trading between 1.5360 and 1.5423 – near 3 month lows. GBPCAD is down 0.25% trading between 1.7380 and 1.7473 – near 3 month lows. JPYCAD is unchanged trading between 0.01175 and 0.01184 – near 3 month lows. Gold is unchanged trading between $1,308 and $1,315USD/oz., silver is unchanged trading between $16.33 and $16.47USD/oz., while oil is up 0.80% trading between $68.12 and $68.93.

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