GFX Morning FX Rates

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.1040-1.1120

Today’s expected range for the Canadian Dollar against the Euro is 1.4910-1.4990

Today’s expected range for the Canadian Dollar against Sterling is 1.8020-1.8100

The US Dollar is marginally stronger this morning  against the Euro and Sterling after both countries announced their interest rate policy. In the UK the Bank of England announced as expected that interest rates would remain at 0.5% and they did not make any changes to their stimulus package, UK markets continues to look for any signs that the Bank of England will raise interest rates before anyone else. The minutes of today’s meeting will be released in two weeks’ time and then the market will get a clearer picture. In Europe, the ECB as expected kept their interest rates at 0.25%, at 08:30 we get Governor Draghi’s press conference and the market will be looking for any signs of added stimulus in the economy, I think the Euro will trade with a weak bias for the next little while.

The Canadian Dollar continues to settle into its new reality around the 1.1100 level, the USD.CAD rate can’t seem  to break much beyond that at the moment but it also cannot hold onto any Canadian Dollar strength when it drops. I do think that will change when we get the employment report tomorrow, my fear is a very bad number will push USD.CAD back up towards 1.1200. I heard on CBC this morning that the major Canadian Law Firm of

Heenan Blaike was closing their doors putting 500 lawyers out of work. I am not as much concerned about the lawyers finding other work but what does concern me is they stated there was not enough business activity ongoing in Canada to support the business of the firm.

Up today we may get some volatility around the Draghi press conference, It may affect EURO.CAD more that USD.CAD but we easily could see some movement if he hints at any further stimulus measures. This afternoon will see currency traders squaring up their positions ahead of tomorrow employment reports

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1064			1.1055
CAD/USD		0.9038			0.9045
EUR/USD		1.3516			1.3513
EUR/CAD		1.4957			1.4944
STG/CAD		1.8014			1.7991
AUD/CAD		0.9915			0.9869
CAD/JPY		91.69			91.43
CAD/CHF		0.8169			0.8178
CAD/HKD		6.9909			6.9981
CAD/CNY		5.48			5.4794
CAD/MXN		11.9824			12.0498
Commodities
Gold		$1,262.00			$1,258.00
OIL		$98.41			$97.87
US DOLLAR INDEX
P.CLOSE		81.03			81.14
OPEN		81.11			81.1
US 10YR YIELD		2.67%			2.62%