Tuesday 3 December 2013

GFX Afternoon Commentary 03 Dec 13


Good afternoon,

Below are the current daily levels vs. the other major currencies.

USD.CAD 1.0650   up 0.06%

GBP.CAD 1.7482   up 0.41%

EUR.CAD 1.4486   up 0.49%

The European Union's statistics agency Tuesday said producer prices fell by 0.5% from September, and were 1.4% lower than in October 2012. That was the largest drop over a 12-month period since December 2009. The decline in prices over the month and year was larger than expected. Currently, the EURO is up 0.47% against the US dollar.

We may see some volatility later this week, with monetary-policy decisions expected from the Bank of England and the European Central Bank on Thursday. The ECB is expected to sit on hands after unexpectedly cutting rates to the record low of 0.25% in November, while the BOE will most probably stick to its forward guidance mantra of the 7% unemployment threshold not being an automatic trigger for a rate hike.

The Canadian dollar continues to fall against the majority of its most-traded peers before a central-bank meeting tomorrow at 10:00 a.m. when policy makers are projected to leave the benchmark interest rate unchanged.  The US is up 0.06% against the CAD.

The overnight expected range for the Canadian dollar against the USD dollar 1.0600-1.0700

The overnight expected range for the Canadian dollar against the Euro is 1.4440-1.4540

The overnight expected range for the Canadian dollar against the Sterling is 1.7430-1.7530

Have a great day.

Barbara

Barbara Friedman  | GFX Partners Inc. |Currency Advisor

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