GFX Monring 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 1.5200-1.5270

Today's expected range for the Canadian Dollar against Sterling is 1.8350-1.8470   

The US Dollar is marginally weaker this morning in very quiet overnight trading. As tensions seem to be easing in the Ukraine the US Dollar and the Japanese Yen seem to be giving back some strength, these are the two currencies (along with the Swiss Franc) that seem to gain the most in times of political uncertainty. The Euro is the strongest of the major currencies  as inflation came in just a little weaker than expectation giving the ECB room to add stimulus to the economy in April, EURO.USD traded to a high of 1.3800 earlier this morning.

The Canadian Dollar had a very tight trading range but continues to look like it wants to get stronger over the short-term, given the current momentum I would expect that we see a test of 1.1000 at some point this week. We do get Canadian GDP data this morning where we are expecting a growth rate for the economy in January of 0.3% which would be up from the December number where the economy contracted by 0.5%. A strong number may give USD.CAD the push it needs to test the 1,1000 level, a weak number will surely have us trading back above 1.1100.

Have a great week.

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1051			1.1016
CAD/USD		0.9049			0.9097
EUR/USD		1.3788			1.3729
EUR/CAD		1.5244			1.5129
STG/CAD		1.8398			1.8309
AUD/CAD		1.0206			1.014
CAD/JPY		93.35			92.86
CAD/CHF		0.7996			0.8057
CAD/HKD		6.9977			7.0211
CAD/CNY		5.6233			5.6375
CAD/MXN		11.8167			11.8751
Commodities
Gold		$1,295.00			$1,296.00
OIL		$101.24			$101.80
US DOLLAR INDEX
P.CLOSE		80.34			80.14
OPEN		80.18			80.21
US 10YR YIELD		2.74%			2.69%