GFX Morning FX Commentary July 16th, 2013

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0375-1.0450

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 1.5700-1.5775

The US Dollar is weaker this morning as Euro and Sterling have both jumped. I think this is still the currency markets settling down after the Bernanke comments of last week, the Euro is higher despite a poor investor confidence report out of Germany so I am not convinced that the Euro is going to run a lot higher but for the moment it seems to be taking advantage of the overnight weakness in the US Dollar. The Australian Dollar continues to be the big mover in overnight markets, last night it recovered about 0.5% as investors cut back on their bets that the Reserve Bank of Australia will cut interest rates at their next meeting.

The Canadian  Dollar is unchanged from our close yesterday, it was marginally weaker during the night but nothing material, Canadian Dollar trading should be subdued ahead of the Bank of Canada announcement tomorrow.

Up today we get the release of the US Consumer Price Report as well as some manufacturing data out of Canada so we could see some volatility around these releases, US Dollar buyers should not expect any big drops in the next 24 hours ahead of the Bank of Canada announcement tomorrow, I would suggest orders around 1.0400 are appropriate at the moment. US Dollar sellers may see a pullback towards 1.0450 today, I think that level would represent good short-term value for US sellers.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0411			1.0428
CAD/USD					0.9498
EUR/USD		1.3112			1.3024
EUR/CAD		1.3653			1.3579
STG/CAD		1.5732			1.5694
AUD/CAD		0.9601			1.059
CAD/JPY		95.4			95.96
CAD/CHF		0.9054			0.9128
CAD/HKD		7.4486			7.4104
CAD/CNY		5.89			5.8863
Commodities
Gold		$1,287.36			$1,282.38
OIL		$106.48			$105.28
US DOLLAR INDEX
P.CLOSE		83.2
OPEN		82.92			83.44
US 10YR YIELD		2.53%			2.60%