GFX Morning Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0850-1.0920

Today's expected range for the Canadian Dollar against the Euro is 1.5150-1.5220

Today's expected range for the Canadian Dollar against Sterling is 1.8400-1.8470

The US Dollar is marginally weaker this morning as the ‎Euro has hit a two-month high against the Greenback in a mostly quiet overnight trading session. The expectation this morning is that the European Central Bank will not make any changes in their interest rate policy nor will they add any other stimulus measures to the economy so that view is giving a boost to the Euro at the moment. If this is the case the Euro should continue to push higher over the next few days.

‎In her speech yesterday US Federal Reserve Chairperson Janet Yellen stated that the US economy still needs stimulus to keep it moving forward and that any interest rate hike is a long way off. This morning the currency markets will be watching the interest rate announcements from both the ECB and the Bank of England, in both cases no change to policy is expected but market watchers still expect that the Bank of England will be the first to move on interest rates down the road. As I write both the ECB and the BOE left rates unchanged, the policy minutes from the BOE meeting will be released in a few weeks

The Canadian Dollar is unchanged against the US Dollar and weaker against both Sterling and the Euro this morning, once again it still looks like the Loonie can get a little stronger over the short-term but that strength will be hard to come by.

Up today we get some housing data out of the US but the main focus will be on the comments from ECB Governor Draghi, he has to be getting concerned with the high value of the Euro, if it continues it will force down inflation and that is going to create a whole new and much more difficult set of problems to deal with.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0884			1.088
CAD/USD		0.9188			0.9191
EUR/USD		1.3941			1.3924
EUR/CAD		1.5177			1.5153
STG/CAD		1.8465			1.8458
AUD/CAD		1.0213			1.016
CAD/JPY		93.46			93.27
CAD/CHF		0.8023			0.8035
CAD/HKD		7.1154			7.1184
CAD/CNY		5.7188			5.729
CAD/MXN		11.9239			12.0076
Commodities
Gold		$1,292.00			$1,312.00
OIL		$100.53			$100.32
US DOLLAR INDEX
P.CLOSE		79.23			79.12
OPEN		79.08			79.14
US 10YR YIELD		2.63%			2.58%