Daily foreign exchange rates for our top 10 currencies & Update #forex #Vancouver September 21, 2018

USDCAD spot rate: 1.2910 - 1.2915 (as at 7:40am PST)

Technical Support / Resistance:

Key Economic Data Releases:

- Canada retail sales: 0.3% (exp 0.4% / prev -0.1%) ex autos: 0.9% (exp 0.6% / prev 0.1%)

- Canada CPI m/m: -0.1% (exp -0.1% / prev 0.5%) y/y: 2.8% (exp 2.8% / prev 3.0%)

- Canada CPI core common: 2.0% / prev 1.9% Median: 2.1% / prev 2.0% Trim: 2.2% / prev 2.1%

- U.S. Markit manufacturing PMI: 55.6 (exp 55.0 / prev 54.7

- U.S. Markit services PMI: 52.6 (exp 55.0 / prev 54.8)

Event Calendar:

Yesterday, USDCAD dropped for the 4^th consecutive day, initially falling from 1.2925 down to 1.2883 – a 3 month low before climbing back to 1.2930. The pairing then settled in a 1.2895 – 1.2915 range for the balance of the day. The USD broadly weakened with the USD index falling to 3 month lows @ 93.83. Back on August 15^th, the index had tested 97.00 – a 14 month high. Overnight, the USD broadly recovered with the index rising to 94.33. GBPCAD dropped over two cents erasing yesterday's gains and falling within 2.5 cents of a 10 month low after European leaders rejected UK Prime Minister May's proposal. PM May acknowledged today that Brexit talks were at an impasse and had some harsh words for the EU. Canada reported good retail sales and higher core inflation data sending USDCAD from 1.2925 down to 1.2884 – near yesterday's lows. A U.S. White House official commented that the U.S. was close to a NAFTA with Mexico but not Canada – USDCAD jumped to 1.2945 on the headlines. The pairing has since fallen back to 1.2910 as oil prices have surged 2% towards a 2 month high. Currently, the TSX and the DJIA are up 0.41% and 0.11% respectively. EURCAD is down 0.11% trading between 1.5154 and 1.5226 – about average for this month. GBPCAD is down 1.33% trading between 1.6862 and 1.7139 – near 10 month lows. JPYCAD is unchanged trading between 0.01143 and 0.01148 – near 8 month lows. Gold is down 0.56% trading between $1,191 and $1,211USD/oz., silver is unchanged trading between $14.16 and $14.43USD/oz., while oil is up 2% trading between $70.11 and $71.66 – near 2 month highs.

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