Today's
expected range for the Canadian Dollar against the US Dollar is 1.0175-1.0275
Today's
expected range for the Canadian Dollar against the Euro is 1.3210-1.3300
Today's expected range for the Canadian Dollar against Sterling is 1.5430-1.5500
The
US Dollar is stronger this morning as the Euro has had its single biggest drop
against the dollar in a trading session in over 14 months. The cause of the
drop was brought on by actions in Cyprus, as part of their package to gain the
EU bailout the Cypriot Prime Minister announced that they would place a tax on
all bank accounts, this caused investors to get very worried that such a tax
could be applied to other EU countries as well. EURO.USD which had been trading
at 1.3080 fell to trade at 1.2900 on the opening last night and looks like it
wants to go lower. The mess that is Europe continues, there are reports that
Cypriot citizens were lined up at cash machines pulling money out of their
accounts as quickly as they can. This measure will almost certainly cause EU
investors across the region to pull funds out of EU banks and send it to the US
and Canada for safe haven.
With
the strength in the US Dollar the Loonie could not hold onto its gains from
last week and now USD.CAD trades back above 1.0200. With the equity markets
going to be extremely negative today (at this point the Dow Jones is pointing
down over 70) I would expect that we will see USD.CAD push higher again. On the
flip side the Loonie has done very well against the Euro and Sterling as both
of those currency pairs are lower.
With
this news out of Europe I look for a busy week, stocks should take it on the
chin this week and we should see lots of volatility in currency markets.
Have
a great week
Mike
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