GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0625-1.0700

Today’s expected range for the Canadian Dollar against the Euro is 1.4600-1.4670

Today’s expected range for the Canadian Dollar against Sterling is 1.7310-1.7380   

The US Dollar is stronger this morning as both the Euro and Sterling are lower. There was no dramatic news out last night, bets are still being placed in the currency market that the US Federal reserve will announce a cut next week to its stimulus program which in turn is driving the volatility at the moment. USD.JPY looks like to still has room to go higher, overnight the Yen traded at its lowest level since 2008 with USD.JPY hitting a high of 1.0370, we will continue to see increased volatility ahead of the US Federal Reserve next week.

The Canadian Dollar early yesterday was hanging on to its recent strength until Australian officials in a speech made the statement that they want to see their currency trade at a level of .8500 to the US Dollar which is considerably lower than the current market level at the time of .9050 when the statement was made. On the announcement the Aussie Dollar dropped over 100 points and it also took the other commodity currencies with it, The Loonie weekend off by 100 points throughout the day. This type of move just reinforces my view that at the moment there is little room for the Loonie to get stronger and US Dollar buyers need to be ready at any opportunity to grab at a chance to buy when the US is cheaper.

With no primary economic data out today I look for a narrow trading range with pressure still for the US to go higher, if we do get some pull back towards the low end of our expected  range US Dollar buyers should have their orders in so they can take advantage of it

Have a great weekend and drive safe as the Toronto region is expecting its first snowfall of the winter.

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0655			1.056
CAD/USD		0.9385			0.9464
EUR/USD		1.372			1.3787
EUR/CAD		1.462			1.4563
STG/CAD		1.7339			1.7324
AUD/CAD		0.9503			0.9554
CAD/JPY		97.18			97.2
CAD/CHF		0.8358			0.8376
CAD/HKD		7.27			7.3353
CAD/CNY		5.6931			5.7453
CAD/MXN		12.1848			12.2983
Commodities
Gold		$1,228.00			$1,238.00
OIL		$97.16			$97.82
US DOLLAR INDEX
P.CLOSE		80.17			79.87
OPEN		80.4			79.91
US 10YR YIELD		2.88%			2.84%