GFX Morning FX Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.1070-1.1150

Today's expected range for the Canadian Dollar against the Euro is 1.5260-1.5350

Today's expected range for the Canadian Dollar against Sterling is 1.8550-1.18630

The US Dollar is stronger this morning as investors run to safe haven assets due to the Russian invasion of Ukraine. On the world's currency markets the Euro has dropped to trade at 1.3760 and Sterling has fallen to 1.67210 against the US Dollar, The Russian Ruble is taking a beating (falling to record low against the US Dollar and the Euro) with reports that the Russian Central Bank has bought some 10 Billion USD worth of Rubles this morning and raised the overnight interest rates to 7% to try and slow the decline. Russian stocks are also getting hit hard with the MICEX index (Ruble based) and the RTS index (US Dollar based) down some 9% this morning.

The Canadian Dollar is a little weaker against the US Dollar but with the weakness in the Euro the Loonie has gained a little strength against the common currency. Overall USD.CAD continues to trade around the 1.1100 level, never straying too far and the Loonie remains vulnerable to outside forces.

With it being the start of a new month we have a busy week on the economic front highlighted by the Bank of Canada Interest rate announcement, European and UK interest rate announcements and finally Canadian and US employment reports on Friday. Up today we get a slew of US secondary data so we may see some enhanced volatility in the market this morning. Our view has not changed, we still favour a rise in USD.CAD with any Canadian Dollar strength being very limited.  

I will be away from the office until Friday as I will be heading to Vancouver for a few days to meet with some new clients, I will have access to emails on my Blackberry.

Have a great week

Mike

GFX Morning Currency Rates
Monday March 03, 2014
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.11			1.1128
CAD/USD		0.9009			0.8986
EUR/USD		1.3761			1.3788
EUR/CAD		1.5279			1.5345
STG/CAD		1.8563			1.8582
AUD/CAD		0.9896			0.9971
CAD/JPY		91.15			91.52
CAD/CHF		0.793			79.23
CAD/HKD		5.9692			6.9532
CAD/CNY		5.5342			5.5217
CAD/MXN		11.9851			11.92
Commodities
Gold		$1,534.00			$1,329.00
OIL		$104.31			$102.29
US DOLLAR INDEX
P.CLOSE		79.78			80.28
OPEN		79.86			79.91
US 10YR YIELD		2.60%			2.67%