GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0500-1.0570

Today's expected range for the Canadian Dollar against the Euro is 1.4220-1.4300

Today's expected range for the Canadian Dollar against Sterling is 1.7050-1.7182

The US Dollar is mixed this morning as it is weaker against the Euro but stronger against Sterling. In the UK investors’ hopes of UK interest rates rising sooner than expected were quickly dampened when Bank of England policy maker said in a BBC interview that the BOE will not be raising interest rates anytime soon. This statement pushed GBP.USD lower as the expectation that the recent Sterling strength may be overdone.

In Europe EUR.USD is stronger this morning as a business confidence report came in much higher than expected and pushed the Euro higher. In Japan the recent weakness in the Yen continued overnight as USD.JPY hit a new recent high of 101.30, it looks set to trade higher in the coming weeks.

The Canadian Dollar has finally broken out of his range and now looks set to test higher, I was not surprised at the move higher but I was surprised just how quickly it moved higher last night. For US Dollar buyers I think now you have to set your sights on 1.0500 as the best level to leave your orders, I do not see a big pullback from USD.CAD over the next few days, the pressure will mount to test the yearly high up at 1.0600 soon.

Up today we do get the Canadian CPI report and the Canadian Retail Sales report for September , I am expecting that these two releases will add some volatility to the currency pair and we will be quite active this morning.

Have a great weekend

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0556			1.0458
CAD/USD		0.9472			0.9562
EUR/USD		1.3516			1.3468
EUR/CAD		1.4276			1.4088
STG/CAD		1.71			1.6874
AUD/CAD		0.968			0.9695
CAD/JPY		95.89			96.29
CAD/CHF		0.8622			0.8738
CAD/HKD		7.3389			7.4045
CAD/CNY		5.77			5.822
CAD/MXN		12.4025			12.5596
Commodities
Gold		$1,241.00			$1,248.00
OIL		$95.16			$94.18
US DOLLAR INDEX
P.CLOSE		81.01			81.09
OPEN		8089			81.07
US 10YR YIELD		2.78%			2.80%