Thursday 3 October 2013

GFX Afternoon Market Commentary Oct 3rd, 2013



Good afternoon,
 
Below are the current daily levels of the Canadian dollar vs. the other major currencies.

USD.CAD 1.0322 down 0.15%

GBP.CAD 1.6698 down 0.43%

EUR.CAD 1.4064 up 0.20%

Weaker than expected growth, in the US service industry has sent equity markets in the US tumbling, with the Dow Jones  sinking to its lowest level in almost a month. On the back of this news, the euro has, as expected, continued to strengthen against the dollar. Seeing as there is still no end in sight to the shutdown, this looks like a trend that may continue for some time yet.

The British pound has fallen against the euro in early trading today, following on from yesterday’s announcement from the Bank of England, that they wouldn’t be raising interest rates until it could be certain that a recovery was assured. At present, rates in Britain are sitting at a record low of 0.5 and will remain that way until unemployment hits the target figure of 7%.

The Canadian dollar had a very quiet morning against the US Dollar and continues to weaken against a strong Euro and Pound, our dollar appears to be suffering from our neighbor’s on-going political woes. As the shutdown continues and the debt ceiling day approaches, economists and investors are speculating that Canada’s growth rates will suffer and unemployment may rise.

The major news to look out for this evening will be the outcome of the Bank of Japan’s policy meeting. Having announced plans, earlier this week, to stimulate the economy to the tune of $51bn, it will be interesting to see if any further stimulus packages will be announced.

The overnight expected range for the Canadian dollar against the US dollar is 1.028-1.037

The overnight expected range for the Canadian dollar against the euro is 1.401-1.411

The overnight expected range for the Canadian dollar against the pound is 1.662-1.675

Enjoy your afternoon,

Gavin

 Gavin McAvoy | GFX Partners Inc |Currency Advisor

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