GFX Morning Commentary June 24th, 2013

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0480-1.0580

Today’s expected range for the Canadian Dollar against the Euro is 1.3750-1.3850

Today’s expected range for the Canadian Dollar against Sterling is 1.6150-1.6250

The US Dollar continues to soar on the expectation of the US Federal Reserve starting to taper off their stimulus program, the Dollar also benefited from report that the Chinese financial system may be facing a cash crunch which would in turn drive up borrowing costs and slow growth in that country. It is clear that global investors are getting out of stock markets and putting their money into cash and US treasuries, stock markets around the world are getting hammered and it looks like today is no exception, the Dow Jones is showing that it will open down over 100 points and in the Bond market US interest rates continue to rise putting additional pressure on the US Dollar.

The Canadian Dollar continues to weaken off in dramatic fashion, just a few weeks back I was writing that the Loonie was stuck in a range and volatility had disappeared from the market, that certainly is not the case anymore as USD.CAD moves ahead at a rapid pace. The Loonie is also much weaker against Euro and Sterling as both of those are currencies are not dropping as much as the Loonie is.

With no economic data out today all markets will be focused on equities to see if they recover, if they get hit hard throughout the day then look for USD.CAD to move higher, if we get a bit of a recovery off of the opening levels then we could see USD.CAD move back towards 1.0500. We do have some US Federal reserve committee members speaking around the world today, given the recent Fed actions their comments may be scrutinized a bit more by the Financial markets.

Have a great week

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0505			1.0378
CAD/USD		0.9519			0.9635
EUR/USD		1.3107			1.3217
EUR/CAD		1.3772			1.3718
STG/CAD		1.6128			1.607
AUD/CAD		0.9658			0.9576
CAD/JPY		93.24			0.9402
CAD/CHF		0.8893			0.894
CAD/HKD		7.3626			7.4513
CAD/CNY		5.8463			5.908
CAD/MXN		12.7656			12.7999
Commodities
Gold		$1,281.00			$1,293.00
OIL		$93.47			$95.42
US DOLLAR INDEX
P.CLOSE		82.61			81.98
OPEN		82.78			82.03
US 10YR YIELD		2.58%			2.40%