GFX Morning FX Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0390-1.0460

Today's expected range for the Canadian Dollar against the Euro is 1.4050-1.4120

Today's expected range for the Canadian Dollar against Sterling is 1.6750-1.6820

The US Dollar was mixed in quiet overnight markets as the currency and equity markets continue to expect sustained stimulus from the US Federal Reserve long after Janet Yellen takes the helm at the Fed. Overnight stocks were also buoyed by the announcement that the Chinese government will implement the broadest range of economic reforms in the that country since the 1990’s. EURO.USD jumped back above 1.3500 this morning, while Sterling gave back some of its recent gains and GBP.USD fell to trade at 1.6090 at one point.

The Canadian Dollar is stronger as is all commodity currencies on the back of the Chinese announcement, our prediction that if the currency pair could not break above 1.0500 it would slowly start to move lower and test the 1.0400 level seems to be coming to fruition this morning. That being said if I was a short-term US dollar buyer I don’t think I would wait for much more movement, this drop represents a great opportunity for buyers and I think they should take advantage of the move.

With little or no economic data today, I am not looking for a big trading range, I look for USD.CAD to stabilize at current rates and take a wait and see attitude with events coming out later in the week.

Have a great week

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0421			1.0461
CAD/USD		0.9546			0.9559
EUR/USD		1.3507			1.3444
EUR/CAD		1.4077			1.4067
STG/CAD		1.6774			1.6817
AUD/CAD		0.9796			0.9759
CAD/JPY		96.08			95.42
CAD/CHF		0.8758			0.8772
CAD/HKD		7.4342			7.4052
CAD/CNY		5.8431			5.8207
CAD/MXN		12.9075			12.4267
Commodities
Gold		$283.00			$1,282.00
OIL		$93.41			$93.89
US DOLLAR INDEX
P.CLOSE		80.87			81.02
OPEN		80.79			81.1
US 10YR YIELD		2.70%			2.72%