GFX Morning Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0950-1.1020

Today's expected range for the Canadian Dollar against the Euro is 1.5140-1.5200

Today's expected range for the Canadian Dollar against Sterling is 1.8360-1.8420

The US Dollar is stronger this morning for the third straight day, yesterday's better than expected US Retail Sales report has provided further evidence that the US recovery is picking up momentum. The Dollar is also picking up some steam on the rising tensions in Ukraine, markets will be watching closely to see if Putin will once again interfere and move into the Eastern region of the country. In the UK the inflation data came in pretty much as expected and hit a new 4.5 year low, I read a very scary article over the weekend that indicated deflation in Europe is becoming a big worry, with deflation the debt to GDP ratio of these countries is going to skyrocket as growth will disappear and rising debt levels will be forcing some of the smaller countries to once again look at possible defaults. We will have to see going forward how the European Central Bank and the Bank of England handle this issues going forward.

The Canadian Dollar continues to hold onto recent strength but is coming under pressure from the stronger US Dollar as USD.CAD moves back towards 1.1000. The Canadian Dollar market should remain in its recent range ahead of the Bank of Canada interest rate announcement tomorrow and our inflation report on Thursday.

Up today we do get some US inflation data for March and we may see some enhanced volatility around the release, the lack of inflation is becoming a world-wide concern and if the US numbers start to slip then you may see a reaction in the currency market.

A quick reminder that our office will be closed on Friday for the Good Friday holiday,  the US markets will be open so make sure you get your orders in early this week to take advantage of any volatility on that day.

Have a great day. 

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0993			1.0974
CAD/USD		0.9097			0.9112
EUR/USD		1.3797			1.3828
EUR/CAD		1.5169			1.5178
STG/CAD		1.8381			1.8354
AUD/CAD		1.0324			1.0322
CAD/JPY		92.61			92.68
CAD/CHF		0.8012			0.8003
CAD/HKD		7.0482			7.0585
CAD/CNY		5.656			5.6644
CAD/MXN		11.8729			11.9139
Commodities
Gold		$1,303.00			$1,324.00
OIL		$103.10			$103.63
US DOLLAR INDEX
P.CLOSE		79.74			79.49
OPEN		79.87			79.71
US 10YR YIELD		2.65%			2.62%