Daily foreign exchange rates for our top 10 currencies & Update #forex #Vancouver October 5, 2018

USDCAD spot rate: 1.2930 - 1.2935 (as at 7:58am PST)

Technical Support / Resistance:

Key Economic Data Releases:

- Canada net employment change: 63,300 (exp 25,000 / prev -51,600)

- Canada unemployment rate: 5.9% (exp 5.9% / prev 6.0%)

- Canada wage inflation (hourly earnings permanent employees) y/y: 2.2% (prev 2.6%)

- Canada international merchandise trade: $0.53 billion (exp -$0.50b / prev -$0.19b)

- U.S. non-farm payrolls: 134,000 (exp 185,000 / prev 270,000 *revised from 201,000)

- U.S. unemployment rate: 3.7% (exp 3.8% / prev 3.9%)

- U.S. avg hourly earnings m/m: 0.3% (exp 0.3% / prev 0.3%) y/y: 2.8% (exp 2.8%/prev 2.9%)

- U.S. trade balance: -$53.2 billion (exp -$53.5 billion / prev -$50.0 billion)

Event Calendar:

Yesterday, USDCAD initially held a 1.2855 – 1.2890 range before climbing to 1.2939 during the North American session on broad-based USD strength. Equity markets and commodity prices tumbled across the board as U.S. 10 year yields soared to 3.20% - the highest since 2011. After hitting new 4 year highs near $77 the previous session, oil prices tumbled 4% to $73.86. Overnight, USDCAD eased lower to 1.2910 ahead of the Canadian and U.S. employment reports. Headline data looked very good for Canada and less so for the U.S. taking USDCAD down to 1.2888. Looking into the details, all of Canada's job gains were part-time jobs while wage inflation declined for the 3^rd consecutive month. It was near 4% back in June and is now at 2.2% y/y. U.S. wage inflation also declined y/y but a +69k revision along with an unemployment rate near a 50 year low more than made up for the soft headline. USDCAD quickly climbed to a new weekly high of 1.2956 before falling back down to 1.2910. Subsequent rallies have stalled shy of the 1.2950 level with pullbacks to 1.2926. The GBP is the best performing currency today hitting 1 week highs against both the CAD and USD on favourable Brexit headlines. Currently, the TSX is unchanged while the DJIA is down 0.36%. EURCAD is up 0.16% trading between 1.4837 and 1.4922 – near 11 month lows. GBPCAD is up 0.50% trading between 1.6809 and 1.6930 – near 11 month lows. JPYCAD is up 0.22% trading between 0.01131 and 0.01137 – near 8 month lows. Gold is up 0.20% trading between $1,197 and $1,206USD/oz., silver is up 0.42% trading between $14.49 and $14.71USD/oz., while oil is up 0.15% trading between $73.81 and $74.98 – near 4 year highs.

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