Afternoon Commentary 16th October, 2013

Good afternoon,

Below are the current daily levels vs. the other major currencies.

USD.CAD 1.0349 up 0.33%

GBP.CAD 1.6481 down 0.78%

EUR.CAD 1.3954 down 0.63%

With a deal yet to be announced by the US senate, the Canadian dollar has recovered some ground on its US counterpart. If as expected a deal is reached shortly this is a trend that could well be repeated. The expectation is that once a deal is announced the Canadian dollar will continue to strengthen against the US dollar in a slow and steady fashion.

The US dollar is also depreciating against several other leading currencies as the debt ceiling deadline approaches, Sterling and the New Zealand dollars have all experienced gains against the US.

Tonight’s activity will of course be dominated by the US debt ceiling discussions, as the US approaches tomorrow debt limit without a new agreement the more the likelihood of a US downgrade of its debt will take place and the US Dollar should trade weaker. In addition to this we have the UK Retail Sales report due out and the market will be looking for further positive signs from the UK economy, a disappointing number should push the Pound lower.

The overnight expected range for the Canadian dollar against the US dollar is 1.0320.10380

The overnight expected range for the Canadian dollar against the euro is 1.3930-1.4000

The overnight expected range for the Canadian dollar against the pound is 1.642-1.6500

Enjoy your afternoon,

Gavin

 Gavin McAvoy | GFX Partners Inc |Currency Advisor