GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.1000-1.1070

Today’s expected range for the Canadian Dollar against the Euro is 1.5060-1.5130

Today’s expected range for the Canadian Dollar against Sterling is 1.8050-1.8120

The US Dollar is mixed in overnight trading markets, Sterling and the Euro both traded higher at one point during the overnight session as business confidence in Germany is on the rise. Most of the overnight currency focus was again on the emerging market currencies in the wake of the Argentina Peso being devalued last week. The South African Rand is getting pummeled in a large part to a mining strike and the Turkish Central Bank has called an emergency meeting to deal with the record low level of the Turkish Lira, money is clearly flowing out the of the emerging markets and into more safe haven currencies like the US Dollar, Swiss Franc and Japanese Yen.

The Canadian Dollar is stronger this morning as the emerging market situation has taken the focus of the free-falling Loonie, USD.CAD is now some 150 points off its high from early last week. It has been a steady rally for the Loonie but the questions is how long will it last before it moves higher? If I was a US Dollar buyer I would employ some common sense and look to purchase someone of my requirements at current levels with the expectation that it could fall further and improve my overall average.

There is nothing of note on the economic calendar today so the Loonie should trade in a confined range.

Have a great week

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1054			1.1077
CAD/USD		0.9046			0.9028
EUR/USD		1.3668			1.3722
EUR/CAD		1.5118			1.52
STG/CAD		1.8324			1.84
AUD/CAD		0.9667			0.9635
CAD/JPY		92.93			92.52
CAD/CHF		0.81			0.8057
CAD/HKD		7.0021			7.024
CAD/CNY		5.4681			5.4588
CAD/MXN		12.1155			12.3603
Commodities
Gold		$1,263.00			$1,270.00
OIL		$96.74			$96.95
US DOLLAR INDEX
P.CLOSE		80.5			80.62
OPEN		80.5			80.25
US 10YR YIELD		2.75%			2.71%