GFX Morning FX Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar 1.0430-1.0500

Today's expected range for the Canadian Dollar against the Euro is 1.4060-1.4130

Today's expected range for the Canadian Dollar against Sterling is 1.6800-1.6870    

The US Dollar is unchanged in very quiet overnight markets. The Greenback was not able to extend the gains it made yesterday on the comments made by Fed Chairperson nominee Janet Yellen. In her confirmation testimony before congress she stated that while stimulus will be eventually removed low interest rates will be the case in the US for many years, if approved she is scheduled to take over the Federal Reserve from Ben Bernanke in the new year. Both EURO.USD and GBP.USD are at the same levels that we closed at yesterday and USD.JPY is off its highs as it continues to push above 100.00.

The USD.CAD currency pair once again rebuffed the 1.0500 level and backed off towards 1.0450, the Loonie was able to garner some support from the Yellen comments, in my comments yesterday I mentioned that if we cannot break the 1.0500 we might eventually drop to 1.0400. If I was a US Dollar buyer I might not be comfortable waiting for the 1.0400 level and would consider the 1.0450 level as a good buying opportunity, I still favour the break of 1.0500 at some point but it might take a while yet.

Only secondary data out of the US and Canada today so I suspect we will have another tight trading range for the Loonie with very little action.

Have a great weekend and for all my Hamilton readers Go Ti-cats!
 

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0461			1.0495
CAD/USD		0.9559			0.9528
EUR/USD		1.3444			1.3436
EUR/CAD		1.4067			1.4105
STG/CAD		1.6817			1.6816
AUD/CAD		0.9759			0.9754
CAD/JPY		95.42			0.9521
CAD/CHF		0.8772			0.8741
CAD/HKD		7.4052			7.3816
CAD/CNY		5.8207			5.8025
CAD/MXN		12.4267			12.4496
Commodities
Gold		$1,282.00			$1,282.00
OIL		$93.89			$93.64
US DOLLAR INDEX
P.CLOSE		81.02			81
OPEN		81.1			81.19
US 10YR YIELD		2.72%			2.72%