Daily FX Report For Tuesday August 16th 2016: US DOLLAR CONTINTUES TO TANK

VBCE Daily Foreign Exchange Update for Tuesday, August 16, 2016

USDCAD spot rate: 1.2875 - 1.2880 (as at 8:20am PST)

Technical Support / Resistance:

Key Economic Data Releases:

• Canadian Mfg. Sales.8%(.7% exp.) -1.0% previous
• US Industrial Production.7%(.3% exp.).4% previous
• US Housing Starts1.211 M(1.180M exp.)1.186M previous Key Event Calendar:

World stocks markets edged away from one-year peaks on Tuesday as a stellar rally stalled, while the dollar hit a one-month low against the yen as recent weak U.S. economic data was seen limiting the scope for a near-term rate hike. A trigger for the USD weakness overnight was a paper from San Francisco Fed President John Williams arguing that central banks might have to raise inflation targets, focus more on growth and back much looser fiscal policy in future. As a result of this and higher oil prices the CAD dollar is very strong, breaking through a couple of support levels to test the 1.2800 level. The TSX is down 0.37% while the Dow is down 0.12%. EURCAD is up 0.18% trading between 1.4448 and 1.4519. GBPCAD is up 0.19% trading between 1.6611 and 1.6735. JPYCAD is up 0.26% trading between 0.01276 and 0.01287. Gold is up 0.43% trading between $1,339 and $1,358USD/oz., silver is up 0.05% trading between $19.74 and $20.11 USD/oz., while oil is up 0.63% trading between $45.37 and $46.19 USD/barrel

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