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

USDCAD spot rate: 1.3050 - 1.3055 (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

1.3029

1.3090

1.3138

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:

Date

Canada

U.S.A.

Aug. 5th

Unemployment rate, Net Employment change, trade balance

Non Farm payrolls, Unemployment rate, Trade Balance

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

083e3d7a6b

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.