GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0580-1.0680

Today’s expected range for the Canadian Dollar against the Euro is 1.4450-1.4525

Today’s expected range for the Canadian Dollar against Sterling is 1.7400-1.7475

Just a quick abbreviated commentary this morning and a recap the activity of last week. The currency markets were quite volatile with USD.CAD moving up and down between 1.0600 and 1.0700 quite a few times, the Loonie does look like it wants to break back below the 1.0600 level this morning, US Dollar buyers should really look at this level as a great buying opportunity. Every time over the past week we try and break lower the market quickly rebounds and breaks back towards 1.0700. We still hold our view that we will see USD.CAD higher in the first quarter of 2104 possibly reaching 1.1000 at some point.

The Overall theme for 2014 will be one of interest rates and just how quickly the US Federal Reserve will end its stimulus program and start to hike interest rates. If they stay on the course they have now established by reducing the stimulus program by $10 Billion every meeting they should stop the program by the end of 2014 and start to raise interest rates in the first quarter of 2015. I would imagine that the Bank of Canada would not be far behind.

With no economic news out until next week and with the financial markets still at half-staff I still look for extreme volatility today so make sure you have your orders in place.

On behalf of everyone here at GFX our best wishes for a Happy and Prosperous New Year.

Have a great year.

Mike 

 

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0628			1.066
CAD/USD		0.9409			0.938
EUR/USD		1.3638			1.3677
EUR/CAD		1.4501			1.4579
STG/CAD		1.7502			1.7599
AUD/CAD		0.9548			0.9427
CAD/JPY		98.18			98.85
CAD/CHF		0.8478			0.8439
CAD/HKD		7.2883			7.2689
CAD/CNY		5.6918			5.6771
CAD/MXN		12.3346			12.3405
Commodities
Gold		$1,230.00			$1,218.00
OIL		$95.41			$98.29
US DOLLAR INDEX
P.CLOSE		80.57			80.12
OPEN		80.59			80.47
US 10YR YIELD		2.98%			3.03%