GFX Morning FX Rates

Good Morning,

Today’s  expected range for the Canadian Dollar against the US Dollar is 1.1200-1.1270

Today’s expected range for the Canadian Dollar against the Euro is 1.5500-1.5570

Today’s expected range for the Canadian Dollar against Sterling is 1.8500-1.8570

The US Dollar is for the most part unchanged against the Euro and Sterling, it is a little weaker against the Yen as money continues to flow back home to Japan in fear of the current Russian crisis. In Russia the bond rating agency Fitch cut the Russian credit outlook to negative and both the Ruble and Russian equity markets fell again lasts night, soon enough Putin will find a big problem with investors losing money because of his actions. Overall with the recent comments by Fed Chairperson Yellen about higher US interest rates a stronger US Dollar trend should remain in place over the short-term.

The Canadian Dollar had a quiet night as it settled in to its new trading range above 1.1200, the Loonie is still being affected by the comments made by the Stephen Poloz and Janet Yellen and the trend is still for a weaker short-term Loonie going forward. Not that it matters but many market writers and pundits consider both of the recent statements to be rookie mistakes by central bank leaders that have not had that much experience in communicating the bank’s policy without actually commenting on specifics, we generally see this kind of mistake anytime someone new leaders take over the reins of a central bank.

Up today we could have a busy morning as we get the release of the February inflation report where we are expecting a drop in the year-over-year inflation rate of 0.9% which is a drop of 0.6%, that would be considered a huge drop and if it comes in like we expect then USD.CAD may break higher as inflation would not be considered a threat by the Bank of Canada so therefore no need to consider interest rate hikes and it may create more room for the Bank to cut interest rates next month. If the inflation rate surprises to the high side like it did last month then we could see USD.CAD break below 1.1200 and if that happens US Dollar buyers need to be ready with their orders.

Have a great weekend

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1257			1.1269
CAD/USD		0.8895			0.8874
EUR/USD		1.3789			1.3763
EUR/CAD		1.5498			1.5521
STG/CAD		1.8547			1.8622
AUD/CAD		1.0208			1.0154
CAD/JPY		90.98			90.9
CAD/CHF		0.7856			0.7856
CAD/HKD		6.8851
CAD/CNY
CAD/MXN
Commodities
Gold		$1,337.00			$1,338.00
OIL		$99.10			$99.10
US DOLLAR INDEX
P.CLOSE		80.19			80.19
OPEN		80.13			80.13
US 10YR YIELD		2.77%			2.77%