​VBCE Daily Foreign Exchange Update for Friday, July 29, 2016

USDCAD spot rate: 1.3085 - 1.3090 (as at 7:41am PST)

Technical Support / Resistance:

Key Economic Data Releases:

- Canada GDP (May): -0.6% (exp. -0.4%/prev 0.1%)

- U.S. GDP 2^nd 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:

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