GFX Morning FX Commentary October 30th, 2013

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar 1.0425-1.0500

Today's expected range for the Canadian Dollar against the Euro is 1.4360-1.4430

Today's expected range for the Canadian Dollar against Sterling is 1.6770-1.6850

The US Dollar is marginally stronger this morning as currency traders the world over ‎prepare for the US Federal Reserve announcement on interest rates later today. We are not expecting all that much in terms of news, the Fed won't make any changes to the interest rate nor given the damage done to the economy by the government shutdown will they adjust the level of stimulus. Currency traders will be looking for any hints of when tapering of the stimulus will start and if the Fed hints that it will be before the 2nd quarter next year then we could see some enhanced volatility.

The Canadian dollar is a bit stronger against the US Dollar this morning and slightly stronger against the Euro and Sterling. Everything for the short-term trading direction for the Loonie will be dependent on the Fed announcement but overall I still favour a move higher towards‎ the 1.0500 level. I still feel that pullback in USD.CAD will be limited over the short-term

Up today in addition to the US Federal Reserve we do also get the delayed US inflation report for September, if inflation starts to rise that may force the hand of central banks the world over but for the moment it look benign.  

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0447			1.0432
CAD/USD		0.9572			0.9585
EUR/USD		1.3754			1.3758
EUR/CAD		1.4378			1.4352
STG/CAD		1.6791			1.6773
AUD/CAD		0.9938			0.9908
CAD/JPY		93.99			93.61
CAD/CHF		0.8587			0.8604
CAD/HKD		7.4138			7.4294
CAD/CNY		5.8293			5.8355
CAD/MXN		12.35			12.4162
Commodities
Gold		$1,350.00			$1,344.00
OIL		$97.48			$98.15
US DOLLAR INDEX
P.CLOSE		79.68			79.4
OPEN		79.6			79.52
US 10YR YIELD		2.49%			2.51%