GFX Morning Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.1030-1.1100

Today’s expected range for the Canadian Dollar against the Euro is 1.5340-1.5420

Today’s expected range for the Canadian Dollar against Sterling is 1.8330-1.8400

The US Dollar is mixed this morning as investors continue to watch the developments in Ukraine waiting to see if the crisis escalates further, this morning the Russian parliament is expected to approve the annexation of Crimea and bring it into the Russian fold, EURO.USD dropped to trade at 1.3890 in relatively stable market conditions but the Euro was also hurt by a poor Business Confidence report that showed business investment in Germany may be declining. In Japan the Yen is stronger against the US Dollar has investors continue to return money to Japan for safe keeping, whenever geo-political risk is on the rise the Yen tends to do better.

Canadian Dollar activity was a non-event last night as it traded in a very narrow range and is basically right where we left it going home last night. The good news is it continues to remain below the 1.1100 level but the risk remains that USD.CAD could spike very quickly on any negative news still remains.

Up today we do get the US CPI report which could bring some added volatility to the market, at some point inflation will start to be a concern for the US economy and when that happens markets will be looking for interest rate hikes sooner than later. If we get any hints on increasing inflation in the US then we will see the US Dollar jump quickly.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1054			1.1055
CAD/USD		0.9046			0.9045
EUR/USD		1.39			1.3836
EUR/CAD		1.5368			1.5386
STG/CAD		1.8355			1.8385
AUD/CAD		1.0056			1.0029
CAD/JPY		91.73			92.02
CAD/CHF		0.7908			0.7908
CAD/HKD		7.0038			7.0024
CAD/CNY		5.6013			5.5854
CAD/MXN		11.9384			11.9514
Commodities
Gold		$1,362.00			$1,380.00
OIL		$98.10			$98.65
US DOLLAR INDEX
P.CLOSE		79.38			79.72
OPEN		79.44			79.5
US 10YR YIELD		2.67%			2.67%