GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0620-1.0700

Today’s expected range for the Canadian Dollar against the Euro is 1.4460-1.4540

Today’s expected range for the Canadian Dollar against Sterling is 1.7430-1.7500

The US Dollar is mixed this morning as it is weaker against the Euro but stronger against Sterling and Canada, today will be the first normal trading day of the New Year with banks back at full staff after the holidays.

In the UK, Sterling is lower as the UK services data came in lower than expected, it was the first poor reading that we have seen on the UK economy in weeks. The biggest mover overnight was once again the Japanese Yen, USD.JPY fell to trade at 104.20 from a high of 104.90, poor data out of the Chinese economy was the trigger, but since most currency speculators are short the Yen any moves like this tend to get overdone.

The Canadian dollar continues to move between the 1.0600 and 1.0700 levels, we have seen the currency do this several times over the past few sessions and today we open right in the middle of that range, we still favour a move back towards 1.0700 with a breakout at some point expected but ahead of that US Dollar buyers should be ready to grab anything towards the 1.0600 level, at this stage there does not seem to be a lot of push for USD.CAD to fall below the 1.0600 level.

Up today we do get some secondary data out of the US and Canada so we may see some enhanced volatility around these release at 08:30, make sure you have your orders in early. Later in the week (Thursday) we get some interest rate announcements from the European Central Bank and the Bank of England and on Friday we get the all-important Employment data out of the US and Canada.

Have a great week and stay warm, it is to get very cold over the next few days in the GTA.

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0638			1.0628
CAD/USD		0.94			0.9409
EUR/USD		1.3603			1.3638
EUR/CAD		1.4473			1.4501
STG/CAD		1.7422			1.7502
AUD/CAD		0.9523			0.9548
CAD/JPY		98.28			98.18
CAD/CHF		0.8501			0.8478
CAD/HKD		7.284			7.2883
CAD/CNY		5.687			5.6918
CAD/MXN		12.3301			12.3346
Commodities
Gold		$1,237.00			$1,230.00
OIL		$94.51			$95.41
US DOLLAR INDEX
P.CLOSE		80.85			80.57
OPEN		80.81			80.59
US 10YR YIELD		2.99%			2.98%