​VBCE Daily Foreign Exchange Update for Monday, August 8, 2016

USDCAD spot rate: 1.3165 - 1.3170 (as at 8:20am PST)

Ranges:

Asia:

1.3166

to

1.3187

Europe:

1.3150

to

1.3179

North America:

1.3142

to

1.3155

Technical Support / Resistance:

S2

S1

R1

R2

1.3004

1.3047

1.3238

1.3356

Key Economic Data Releases:

-Canada Building Permits: -5.5% (exp. 1.5%) -2.1% previous

Key Event Calendar:

Date

Canada

U.S.A.

Aug. 9

Aug. 10

Aug. 11

Aug. 12

Housing starts

New housing price index

Non-farm productivity, unit labor costs

Crude oil inventories

Retail sales, producer price index

CAD is flat from Friday's close, consolidating within a tight range into what is likely to be a relatively quiet NA session. The USD/CAD shrugged off Canada's worse than expected building permit numbers. The FED appears to be in no rush to raise interest rates and a September increase remains unlikely. The bar to a rate increase remains high and the US Presidential election suggests December is the earliest the FED would consider moving at this point. Market implied probabilities suggest a 43% chance of a 25bps hike at the end of the year, up from 30% before the payroll report. The TSX is up 0.56% while the Dow is down 0.10%. EURCAD is up 0.08% trading between 1.4550 and 1.4625. GBPCAD is down 0.14% trading between 1.7140 and 1.7253. JPYCAD is down 0.70% trading between 0.01280 and 0.01294. Gold is up 0.05% trading between $1,330 and $1,338USD/oz., silver is up 0.58% trading between $19.52 and $19.80 USD/oz., while oil is up 2.26% trading between $41.84 and $43.14USD/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.