GFX Morning FX Commentary August 26th, 2013

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0580-1.0560

Today’s expected range for the Canadian Dollar against the Euro is 1.4020-1.4100

Today’s expected range for the Canadian Dollar against Sterling is 1.6350-1.6430

The US Dollar is marginally stronger this morning in quiet FX trading conditions, the UK market is closed today for the summer bank holiday so that greatly reduced the trading activity. Market conditions are pretty much the same to start the new week, the selloff in Emerging market continues ( the Indian Rupee is back near the all-time record low), flows out of emerging markets seem to be supporting the Euro and Sterling, financial markets remained on Fed watch to see when the Fed will start to taper their stimulus program and the Canadian Dollar remains weak against the Euro and Sterling which in turn is driving the weakness in the Loonie against the US Dollar.

Up today we do get the release of the US Durable Goods report which I think financial markets will pay a little bit more attention to, on Friday the US New Homes sales plunged almost 14% last month so if the US Durable Goods report comes in worse than expected we may see the US Dollar get hit, otherwise USD.CAD should trade within recent rages. Until I see EURO.CAD and GBP.CAD start to retreat I feel the Loonie should remain under pressure to weaken against the US Dollar.

Have a great week

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0518			1.0556
CAD/USD		0.9507			0.9473
EUR/USD		1.3368			1.3356
EUR/CAD		1.4063			1.41
STG/CAD		1.6377			1.6487
AUD/CAD		0.9484			0.9502
CAD/JPY		93.73			93.71
CAD/CHF		0.8778			0.8756
CAD/HKD		7.3512			7.3261
CAD/CNY		5.8159			5.7973
CAD/MXN		12.4156
Commodities
Gold		$1,395.00			$1,374.00
OIL		$106.44			$105.15
US DOLLAR INDEX
P.CLOSE		81.41			81.5
OPEN		81.47			81.57
US 10YR YIELD		2.82%			2.90%