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 1.4150-1.4230
Today’s
expected range for the Canadian Dollar against Sterling is 1.6620-1.6700
The
US Dollar is considerably stronger in overnight currency markets as a dramatic
rise in borrowing costs for Chinese Banks created worry about economic growth
in China. This caused a run to safe haven assets giving strength to the US Dollar
and the Yen. EURO.USD which had been on a nice run fell to trade at 1.3740 and
Sterling which is on a huge run of momentum
fell to trade at 1.6120, with stocks pointing to the downside today we may see
further strength for the US Dollar.
Last
night the Canadian Dollar gave back what little strength it gained off of the
poor US employment report yesterday and USD.CAD jumped higher on the Chinese
news, the Loonie did fair better than other commodity currencies with both
Aussie and Kiwi dropping over 1% last night. I still feel that the Loonie is vulnerable
at these levels and I won’t be surprised if we see USD.CAD move back towards
1.0400 in the coming days. Anything below 1.0300 will represent good value for US
Dollar buyers on a forward basis.
Canadian
Dollar trading will today be dominated by the Bank of Canada interest Rate policy
announcement (10:00 am), we are not expecting any changes to the interest rate
nor are we expecting any change to their forecast on when interest rates will start
to move higher. Bloomberg is reporting that they will most likely revise
downward their growth expectations for 2nd half growth in the
economy which should be a US Dollar negative. If the downgrade is significant
we could easily see USD.CAD up at 1.0350 today.
I
will be out of the office today attending a conference on the newly formed MSB
organization. I will be accessible via email and will monitor developments from
my Blackberry.
Have
a great day
Mike
GFX
Morning Currency Rates
|
|||||||
| Currencies | 7:00am Today's Opening | Yesterday's Opening | |||||
| USD/CAD | 1.0319 | 1.029 | |||||
| CAD/USD | 0.969 | 0.9718 | |||||
| EUR/USD | 1.3743 | 1.367 | |||||
| EUR/CAD | 1.4184 | 1.4072 | |||||
| STG/CAD | 1.6644 | 1.6599 | |||||
| AUD/CAD | 0.9929 | 0.9952 | |||||
| CAD/JPY | 94.26 | 95.57 | |||||
| CAD/CHF | 0.8672 | 0.8757 | |||||
| CAD/HKD | 7.5078 | 7.5326 | |||||
| CAD/CNY | 5.8943 | 5.9204 | |||||
| CAD/MXN | 12.5588 | 12.432 | |||||
| Commodities | |||||||
| Gold | $1,331.00 | $1,313.50 | |||||
| OIL | $96.88 | $98.94 | |||||
| US DOLLAR INDEX | |||||||
| P.CLOSE | 79.3 | 79.8 | |||||
| OPEN | 79.43 | 79.3 | |||||
| US 10YR YIELD | 2.51% | 2.51% | |||||
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