​VBCE Daily Foreign Exchange Update for Thursday, August 4, 2016

USDCAD spot rate: 1.3050 - 1.3055 (as at 8:57am PST)

Technical Support / Resistance:

Key Economic Data Releases:

-US Factory Orders -1.5% (-1.8% exp.) -1.2% previous

-US Initial Jobless Claims 269k (265k exp.) 266K previous

Key Event Calendar:

UK interest rates have been cut from 0.5% to 0.25% and the Bank of England has signaled that they could go lower if the economy worsens. The Bank announced a range of measures to stimulate the UK economy, including a £100bn scheme to force banks to pass on the low interest rate to households and businesses.

It will also buy £60bn of UK government bonds and £10bn of corporate bonds. Governor Mark Carney said there was scope to cut the interest rate further. As a result the pound dropped dramatically. North American news was muted but the Canadian dollar is up 1/3 of a cent against the USD so far this morning. The TSX is down 0.09% while the Dow is down 0.09%. EURCAD is down 0.25% trading between 1.4519 and 1.4579. GBPCAD is down 1.59% trading between 1.7105 and 1.7453. JPYCAD is up 0.04% trading between 0.01287 and 0.01293. Gold is up 0.37% trading between $1,349 and $1,366USD/oz., silver is down 0.31% trading between $20.06and $20.52 USD/oz., while oil is down 1.13% trading between $40.46 and $41.38USD/barrel

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