GFX Morning Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0900-1.0970

Today’s expected range for the Canadian Dollar against the Euro is 1.5210-1.5280

Today's expected range for the Canadian Dollar against Sterling is 1.8520-1.8590

The US Dollar is weaker this morning as positive economic news out of the Euro-Zone and the UK helped to push the Greenback lower. In Europe, Spanish bond yields fell as the economy in Spain showed that the unemployment picture was improving and in Germany the Services index came in much better than expected, both the Euro and Sterling tested multi-week highs against the US Dollar, at the moment the US Dollar seems to be under a bit of pressure.

The Canadian Dollar traded stronger against the US Dollar most of yesterday afternoon and is once again approaching levels close to where it was before the US Employment report on Friday, with the gains in both Euro and Sterling the Loonie lost a bit of ground to those currencies. IF the Loonie can hold onto its gains then look for EURO.CAD and GBP.CAD to stay close to current levels over the sort-term.

Up today we have the US and Canadian Trade figures for March, I mentioned yesterday that they were due out but I got my days mixed up. Given the overnight volatility I think we will see USD.CAD continue to test lower at some point this morning but I would be very surprised if we were to break much lower. US Dollar buyers should be looking at these levels as a good opportunity to buy some US.

Have a great day

Mike

GFX Morning Currency Rates
Tuesday May 06, 2014
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0937			1.0972
CAD/USD		0.9142			0.9114
EUR/USD		1.3933			1.3871
EUR/CAD		1.524			1.5222
STG/CAD		1.8554			1.8508
AUD/CAD		1.0199			1.0165
CAD/JPY		93.14			92.9
CAD/CHF		0.7984			0.7994
CAD/HKD		7.0833			7.0591
CAD/CNY		5.6915			5.687
CAD/MXN		11.9394			11.897
Commodities
Gold		$1,309.00			$1,312.00
OIL		$99.71			$100.31
US DOLLAR INDEX
P.CLOSE		79.49			79.57
OPEN		79.23			79.5
US 10YR YIELD		2.62%			2.57%