​VBCE Daily Foreign Exchange Update for Friday, Aug 5, 2016

USDCAD spot rate: 1.3185 - 1.3190 (as at 7:32am PST)

Technical Support / Resistance:

Key Economic Data Releases:

- Canada net employment change: -31,200 (exp. 10,000/prev -700)

- Canada unemployment rate: 6.9% (exp. 6.9%/prev. 6.8% )

- Canada trade balance: -$3.63 billion (exp. -$2.82billion/prev -$3.5 billion)

- Canada Ivey PMI: 57.0 (exp. 50.9)

- U.S. Non-farm payrolls: 255,000 (exp. 180,000/prev 292,000)

- U.S. unemployment rate: 4.9% (exp. 4.8%/prev 4.9%)

- U.S. average hourly earnings: 0.3% (exp. 0.2%/prev 0.1%)

- U.S. trade balance: -$44.51 billion (exp. -$43.1 billion/prev -$40.96 billion)

Key Event Calendar:

Date Canada U.S.A.

Aug 8

Aug 9

Aug 10

Aug 11

Aug 12

Building permits

Housing starts

New housing price index

Non-farm productivity, unit labor costs

Crude oil inventories

Retail sales, producer price index

Yesterday, USDCAD dipped from 1.3070 down to 1.3035 before bouncing to 1.3091. The pairing then

eased to 1.30 where it found support for the 3rd time since last Friday, and bounced to 1.3035 late in the

day. There was little action overnight ahead of the U.S. and Canadian jobs report. U.S. data beating

expectations with a very strong data set while Canadian data came in well below expectations. There were

71,400 full time job losses in July on top of the 40,100 losses from June. USDCAD surged from 1.3014 up

to 1.3150 within minutes before a quick correction down to 1.3120. The next wave of CAD selling took

USDCAD up to 1.3194 before easing to 1.3170. Currently, the TSX and the DJIA are up 0.56% and 0.81%

respectively. EURCAD is up 0.75% trading between 1.4489 and 1.4602. GBPCAD is up 0.60% trading

between 1.7072 and 1.7229. JPYCAD is up 0.75% trading between 0.01285 and 0.01297. Gold is down

1.61% trading between $1,337 and $1,365USD/oz., silver is down 3% trading between $19.77 and

$20.43USD/oz., while oil is down 1% trading between $41.28 and $42.07.

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

CNBC, Forexlive

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