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

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

Technical Support / Resistance:

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:

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