Good Morning,
Today's expected range for the Canadian Dollar against the US Dollar is .9975-1.0075
Today's expected range for the Canadian Dollar against the Euro is 1.3160-1.3300
Today's expected range for the Canadian Dollar against Sterling is 1.5700-1.5825
The US Dollar continues to weaken as a result of the US Federal Reserve announcement yesterday that saw the Fed say interest rates would stay low until late 2014, previously they said rates would stay low until 2013 so a very important statement and adjustment of policy. As I said yesterday I think this indicates that the US economy is in much worse shape than previously reported and will take longer to recover but global investors looked at this differently as they took equity markets higher and punished the US Dollar. The expectation now is that the only decent returns that investors will get in the next two years will come from equities and not the bond markets, as we have recently seen when equity markets rise they US dollar falls in value as investors leave the safety of US treasury bills and buy into global equity markets and this has been the case over the last 24 hours.
Despite all the problems in Europe the Euro is benefitting from this US dollar decline with EURO.USD rising to trade at 1.3170 this morning, both Euro and Sterling are also higher against the Loonie but not by as much as the Canadian Dollar is also stronger against the Greenback.
Right after the Fed announcement the Canadian Dollar started to rally and it has continued to strengthen during the night and now looks set to test back below parity, the first time the Loonie has been stronger than the US Dollar since early November.
Up today we have some secondary US data due out but I don't think it will have much of an impact, currency traders will watch the equity markets to get a sense of direction and right now they are point higher so I think the first move today for USD.CAD will be to test 1.0000 and if they continue to rally then USD.CAD should move lower. I have pointed this out before but only the media makes any case for par being an important level for USD.CAD, for currency traders it is just another number, if the trend for a strong Loonie continues to play out then USD.CAD will once again break lower and the Loonie will trade above par.
US dollar sellers need to look at the 1.0050 to 1.0075 to leave some orders and take advantage of any pull-back that we may get in the next day or two, markets never run in a straight line so make sure you are ready for the pullback with your orders.
Have a great day
Mike
* For current market prices please contact our currency advisors or visit our site a http://www.gfxpartners.ca/*
| Currencies | 7:00am Today's Opening | Yesterday's Opening | |||||
| USD/CAD | 1.0016 | 1.0128 | |||||
| CAD/USD | 0.9984 | 0.9873 | |||||
| EUR/USD | 1.3142 | 1.2957 | |||||
| EUR/CAD | 1.3165 | 1.3129 | |||||
| STG/CAD | 1.57 | 1.5785 | |||||
| AUD/CAD | 1.0677 | 1.0685 | |||||
| CAD/JAP | 77.45 | 77.06 | |||||
| CAD/CHF | 0.9159 | 0.9197 | |||||
| CAD/HKD | 7.7429 | 7.6594 | |||||
| CAD/CNY | 6.3021 | 6.2585 | |||||
| Commodoties | |||||||
| Gold | $1,715 | $1,655 | |||||
| OIL | $100.38 | $98.17 | |||||
| Option Volatility | |||||||
| O/N | 12.76% | 13.34% | |||||
| 1 Week | 9.88% | 10.36% | |||||
| 1 Month | 9.49% | 10.15% | |||||
About GFX Partners Inc
GFX is today a leading Canadian provider of foreign exchange services and global payment solutions, we service a wide range of North American clients that conduct business in foreign countries and help them manage their FX exposure. Clients choose GFX for our specialized knowledge and dedication to providing the best possible coverage against the negative effects of fluctuations in the foreign currency markets
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