VBCE Daily Foreign Exchange Update for Friday, July 29, 2016
USDCAD spot rate: 1.3085 - 1.3090 (as at 7:41am PST)
| Ranges: | Asia: | 1.3132 | to | 1.3163 |
| Europe: | 1.3150 | to | 1.3186 | |
| North America: | 1.3075 | to | 1.3185 |
Technical Support / Resistance:
| S2 | S1 | R1 | R2 |
| 1.3012 | 1.3075 | 1.3115 | 1.3194 |
Key Economic Data Releases:
- Canada GDP (May): -0.6% (exp. -0.4%/prev 0.1%)
- U.S. GDP 2nd quarter: 1.2% (exp. 2.6%/prev. 0.8% )
- U.S. GDP price index: 2.2% (exp. 1.8%/prev 0.5%)
- U.S. Chicago purchasing managers index: 55.8 (exp. 54/prev 56.8)
- U.S. consumer sentiment index: 90 (exp. 90.5/prev 89.5)
- Bank of Japan interest rate policy: -0.10% (exp. -0.15%)
Key Event Calendar:
| Date | Canada | U.S.A. |
| Aug 1 Aug 2 Aug 3 Aug 4 Aug 5 | B.C. Day RBC manufacturing PMI Net employment change Unemployment rate, Ivey PMI, trade balance | ISM Manufacturing PMI, Markit mfg. PMI Core PCE, personal income / spending ADP employment change, ISM non-mfg pmi Factory orders Non-farm payrolls, unemployment rate, Avg.hourly earnings, trade balance |
Yesterday, USDCAD dipped from 1.3170 down to 1.3101 before bouncing to 1.3192 during the North American session. The move higher was short-lived as the pairing would ease lower towards 1.3150 in late trade. Overnight, all attention was on the JPY in anticipation of additional stimulus measures by the Bank of Japan. The policy underwhelmed the market sending the JPY higher across the board. USDCAD held a 1.3132 – 1.3186 range heading into the 5:30am GDP releases. Both Canada and the U.S. missed estimates but the U.S. miss was far more pronounced. After a brief bounce from 1.3150 up to 1.3185, broad-based USD weakness took USDCAD down to 1.3075, its lowest level in 1 week. The pairing bounced to 1.3115 but has since fallen to 1.3060. Currently, the TSX and the DJIA are both down about 0.30%. EURCAD is up 0.20% trading between 1.4553 and 1.4668. GBPCAD is unchanged trading between 1.7262 and 1.7393. JPYCAD is up 2.5% trading between 0.01249 and 0.01278. Gold is up 1% trading between $1,329 and $1,349USD/oz., silver is up 0.50% trading between $19.97 and $20.39USD/oz., while oil is down 1% trading between $40.60 and $41.17.
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.
