VBCE Daily Foreign Exchange Update for Wednesday, August 3, 2016
USDCAD spot rate: 1.3075 - 1.3080 (as at 8:57am PST)
| Ranges: | Asia: | 1.3103 | to | 1.3134 |
| Europe: | 1.3101 | to | 1.3136 | |
| North America: | 1.3084 | to | 1.3100 |
Technical Support / Resistance:
| S2 | S1 | R1 | R2 |
| 1.2979 | 1.3024 | 1.3167 | 1.3220 |
Key Economic Data Releases:
-US ADP Employment Change 179k (170k exp) 172k previous
-US ISM Non-mfg PMI 55.5 (56.0 exp.) 56.5 previous
Key Event Calendar:
| Date | Canada | U.S.A. |
| Aug 4th Aug. 5th | Unemployment rate, Net Employment change, trade balance | Factory Orders Non Farm payrolls, Unemployment rate, Trade Balance |
CAD is down slightly after US ADP employment change was better than expected, posting an increase of 179k. Job data numbers on Friday should provide us with more clues on the Federal Reserve's next moves. The broader market tone presents the greatest near-term risk for CAD as we note the emergence of disconnect to its typical drivers (oil prices, yield spreads). Meanwhile the Bank of England is expected to cut interest rates Thursday. The TSX is up 0.02% while the Dow is up 0.11%. EURCAD is down 0.47% trading between 1.4602 and 1.4733. GBPCAD is down 0.29% trading between 1.7396 and 1.7546. JPYCAD is down 0.47% trading between 0.01289 and 0.01301. Gold is down 0.46% trading between $1,354 and $1,366USD/oz., silver is down 0.78% trading between $20.38 and $20.72 USD/oz., while oil is up 0.99% trading between $39.23 and $40.43USD/barrel
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.
