GFX Morning FX Commentary Ocotber 7th, 2013

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0280-1.0350

Today's expected range for the Canadian Dollar against the Euro is 1.3970-1.4050

Today's expected range for the Canadian Dollar against Sterling is 1.6560-1.6630

The US Dollar is marginally weaker this morning as the ongoing political crisis in Washington continues to weigh on the Greenback. The dollar is weakest against the Japanese Yen as money flows out of the global capital markets and back to Japan for safe keeping. I read this morning that the Yen generally strengthens in times of turmoil as that country does not need foreign investment to fund its deficit. The Dollar is also a little weaker against the Euro and this in spite of a poor investor Confidence report that came out this morning,  Sterling is again stronger as well as an industry report showed the UK Financial industry reached a 17-year high, Sterling should remain strong ahead of the Bank of England interest rate  policy announcement this Thursday. The US Dollar should continue to trade with a weak bias until the political rhetoric that is Washington ends this current crisis.

The Canadian Dollar just cannot make any ground up against the Greenback which tells me that despite our relatively stable economy global investors are just lumping us in with the US with the idea that  if the US goes down so does Canada. Our economy is just too small to benefit from any safe haven effect so the Loonie continues to just trade back and forth around current levels as it awaits resolution of the current crisis.

With no important economic releases due out today  I look for more of the same, I expect the rhetoric out of Washington to heat up this week and to peak the closer we get to the legal debt ceiling.

Have a great week

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0317			1.0336
CAD/USD		0.9693			0.9675
EUR/USD		1.3577			1.3593
EUR/CAD		1.401			1.4053
STG/CAD		1.6582			1.6591
AUD/CAD		0.9717			0.9744
CAD/JPY		93.9			93.95
CAD/CHF		0.875			0.8728
CAD/HKD		7.51			7.4959
CAD/CNY		5.9308			5.9226
CAD/MXN		12.7738			12.7453
Commodities
Gold		$1,314.00			$1,316.00
OIL		$102.89			$103.66
US DOLLAR INDEX
P.CLOSE		80.24			79.87
OPEN		80.09			80.03
US 10YR YIELD		2.62%			2.62%