GFX Morning FX Commentary July 2nd

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0480-1.0560

Today’s expected range for the Canadian Dollar against the Euro is 1.3700-1.3775

Today’s expected range for the Canadian Dollar against Sterling is 1.5970-1.6050

The US dollar is marginally weaker from our close on Friday, it looks for the most part that  the US Dollar traded in familiar ranges against most currencies, Sterling is a little higher as it strengthened against the Euro for the first time in 5 days on the back of a UK construction report that showed construction spending expanded in June. Monday was the first day on the job for Bank of England Governor Mark Carney and already the currency is a bit stronger, he does chair his first interest rate policy meeting this week so I am sure his week will get a bit tougher as it goes along.

After a very tough run gold seems to be settling down as it climbs for a third straight day, it has not been this low since 2010. It will be interesting to see if it can stage a recovery or will this now be a new reality for the medium term.

The Canadian Dollar continues to trade within recent ranges as it trades back and forth around the 1.0500 level, for the moment it seems to be supported around the 1.0450 level and finds resistance up at the 1.0550 level, I imagine that it will stay within these ranges ahead of Friday’s employment report.

Up today we do get lots of manufacturing data out of the US, we are expecting a 2.0% rise in US Factory orders, the market will be watching for a positive report, a poor number should create employment concerns for the market and hurt stocks .

Have a great week

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0522			1.0482
CAD/USD		0.9844			0.954
EUR/USD		1.3027			1.3061
EUR/CAD		1.3709			1.3691
STG/CAD		1.5991			1.5974
AUD/CAD		0.9664			0.9686
CAD/JPY		94.72			0.9493
CAD/CHF		0.9001			0.9011
CAD/HKD		7.3671			7.3795
CAD/CNY		5.8255			5.852
CAD/MXN		12.28			12.4584
Commodities
Gold		$1,258.00			$1,203
OIL		$98.09			$97.25
US DOLLAR INDEX
P.CLOSE		83.43			83.17
OPEN		83.19			83.26