GFX Morning Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0550-1.0620

Today’s expected range for the Canadian Dollar against the Euro is 1.4570-1.4650

Today’s expected range for the Canadian Dollar against Sterling is 1.7270-1.7340

The US Dollar is for the most part unchanged from our Friday close as the market awaits the US Federal Reserve decision on interest rates this Wednesday. The Euro is a bit higher as the EU Zone Industrial Production report for December came in better than expected, once again it was Germany leading the way  with very strong numbers. It is clearly emerging that the EU is moving out of their recession being led by Germany, it will be interesting to see if this can be maintained over the long haul.

The Canadian Dollar is right where we left it on Friday and for the most part we should trade within the 1.0550 to 1.0650 trading range ahead of the US Federal Reserve announcement on Wednesday. There is no primary Canadian data until Friday so the currency should be relatively stable ahead of Wednesday’s announcement.

Up today we do get some activity out of the US including Industrial Production and Capacity Utilization so we may see a little volatility. The risk still remains that USD.CAD moves back towards 1.0700 before the end of the year so US Dollar buyers should be protecting themselves against any possible moves higher for USD.CAD.

Have a great week.

mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0585			1.0655
CAD/USD		0.9447			0.9385
EUR/USD		1.3782			1.372
EUR/CAD		1.4595			1.462
STG/CAD		1.7287			1.7339
AUD/CAD		0.9455			0.9503
CAD/JPY		97.25			97.18
CAD/CHF		0.8359			0.8358
CAD/HKD		7.3162			7.27
CAD/CNY		5.7325			5.6931
CAD/MXN		12.1973			12.1848
Commodities
Gold		$1,229.00			$1,228.00
OIL		$97.14			$97.16
US DOLLAR INDEX
P.CLOSE		80.38			80.17
OPEN		80.12			80.4
US 10YR YIELD		2.85%			2.88%