GFX Morning FX Commentary October 4th, 2013

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0300-1.0370

Today's expected range for the Canadian Dollar against the Euro is 1.4020-1.4100

Today's expected range for the Canadian Dollar against Sterling is 1.6550-1.6620

The US Dollar is a little stronger this morning against the Euro and Sterling in very quiet overnight trading markets. It is a bit weaker against the Yen as the Bank of Japan did not announce any changes to their interest rate or stimulus program but did warn that if the US Government does not raise the debt ceiling then they would have to take further action to protect the Japanese economy. Today would have been a busy day as we were expecting the US Employment report to have been released but that has been postponed due to the Government shutdown. With less and less economic information being released global investors will become increasingly nervous about the US recovery and will expect the US Federal Reserve to continue providing stimulus to the economy.

Sterling continues to give up ground as it bounces lower after setting a nine-month high against the Greenback earlier this week. The Pound has been on quite a run as of late and I really don’t think the UK economy warrants such a strong currency, I don’t think it will weaken dramatically in a straight line down but I think it will start to trade with a weak bias over the short-term

The Canadian Dollar is right where we closed it last night so once again a very uninspiring evening for the Loonie. With the lack of economic news I would not expect anything much to happen today, we do get the release of the Ivey Purchasing Managers Index at 10:00 so we may see a little volatility around that release,  I look for continued appreciation of USD.CAD today with the potential for 1.0400 next week.

Have a great weekend

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0336			1.0335
CAD/USD		0.9675			0.9675
EUR/USD		1.3593			1.36
EUR/CAD		1.4053			1.4058
STG/CAD		1.6591			1.6765
AUD/CAD		0.9744			0.9658
CAD/JPY		93.95			94.51
CAD/CHF		0.8728			0.8721
CAD/HKD		7.4959			7.4477
CAD/CNY		5.9226			5.9194
CAD/MXN		12.7453			12.7419
Commodities
Gold		$1,316.00			$1,305.00
OIL		$103.66			$103.89
US DOLLAR INDEX
P.CLOSE		79.87			79.99
OPEN		80.03			79.96
US 10YR YIELD		2.62%			2.64%