GFX Morning FX Commentary July 13th, 2013

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0235-1.0310

Today’s expected range for the Canadian Dollar against the Euro is 1.3620-1.3700

Today’s expected range for the Canadian Dollar against Sterling is 1.5810-1.5900

The US Dollar is for the most part unchanged this morning with the lone exception being USD.JPY. Japan for the past decade has been suffering from deflation and a lack of growth in the economy, in response to this the Bank of Japan under the influence of the new Japanese Government introduced a massive stimulus package to stimulate both growth and inflation. The news out of Japan this morning appears to show that the new program is have a positive effect as Japanese inflation numbers showed the biggest increase in consumer prices since 2008, the trick now for the BOJ will be to maintain inflation at 2% over the long-term while encouraging growth, it will be interesting to see if they can do that. USD.JPY fell to trade at 98.50 during the overnight session, it was the biggest mover of the evening, both Euro and Sterling are basically where we left them last night.

The Canadian Dollar had a very quiet night as did most currency pairs, it continues to play out as we thought settling in to trade back and forth around the 1.0300 level, it will most likely stay like this until we get the Federal Reserve commenting on their stimulus program again.  We Should have a quiet day today with the exception being the US Consumer Confidence report due out at 09:55, it should not move the market all that much but if the number is below expectation you may see the Loonie rally a bit.

Have a great weekend

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0272			1.0298
CAD/USD		0.9735			0.9711
EUR/USD		1.3225			1.3194
EUR/CAD		1.3639			1.3586
STG/CAD		15,410			1.5734
AUD/CAD		0.9522			0.9443
CAD/JPY		95.9			96.67
CAD/CHF		0.9035			0.9091
CAD/HKD		7.5514			7.531
CAD/CNY					5.9568
		5.968
Commodities
Gold		$1,330.00			$1,312.36
OIL		$104.78			$104.59
US DOLLAR INDEX
P.CLOSE		81.83			82.08
OPEN		81.76			82.33
US 10YR YIELD		2.57%			2.60%