​VBCE Daily Foreign Exchange Update for Tuesday, August 9, 2016

USDCAD spot rate: 1.3110 - 1.3115 (as at 7:45am PST)

Ranges:

Asia:

1.3153

to

1.3188

Europe:

1.3144

to

1.3190

North America:

1.3119

to

1.3177

Technical Support / Resistance:

S2

S1

R1

R2

1.3047

1.3100

1.3286

1.3238

Key Economic Data Releases:

-Canadian Housing Starts 198k (195K exp.) 218K previous

-US Non farm Productivity -.5% (.4% exp.) -.6% previous

-US unit Labour costs 2% (1.8% exp.) -0.2% previous

Key Event Calendar:

Date

Canada

U.S.A.

Aug. 10

Aug. 11

Aug. 12

New housing price index

Crude oil inventories

Retail sales, producer price index

Shares rose in Europe and Asia on Tuesday while sterling fell to its weakest in a month against the dollar on the prospect of easier monetary policy in Britain following its June vote to leave the European Union.

The Bank of England's sole policy hawk, Ian McCafferty, told The Times newspaper that, if the UK economy slowed as much as sentiment surveys have suggested, more easing would be required on top of the measures unveiled by the Bank last week.That was enough to push sterling as low as $1.2968, its weakest since July 11. Meanwhile the Cad dollar has gained nearly ½ a cent against its US counterpart so far this morning on higher commodity prices. We will look to the upcoming Crude Oil Inventory numbers this morning to direct the Canadian dollar in the short term. The TSX is up 0.34% while the Dow is up 0.25%. EURCAD is down 0.07% trading between 1.4564 and 1.4615. GBPCAD is down 0.68% trading between 1.7011 and 1.7169. JPYCAD is up 0.22% trading between 0.01285 and 0.01290. Gold is up 0.47% trading between $1,330 and $1,342USD/oz., silver is up 0.74% trading between $19.60 and $19.88 USD/oz., while oil is up 1.18% trading between $42.53 and $43.49USD/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.