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)

Ranges:

Asia:

1.2913

to

1.2935

Europe:

1.2915

to

1.2942

North America:

1.2888

to

1.2956

Technical Support / Resistance:

S2

S1

R1

R2

1.2880

1.2910

1.2950

1.2980

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:

Date

Canada

U.S.A.

Oct 8

Oct 9

Oct 10

Oct 11

Oct 12

Thanksgiving

Housing starts

Building permits

New housing price index

Columbus Day

Producer price index

Consumer price index

Consumer sentiment index

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 3rd 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

B90fe1ad36

Follow us




Follow us on Twitter @vbcefx


Disclaimer


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.