GFX Morning FX Commentary

‎Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0840-1.0900

Today's expected range for the Canadian Dollar against the Euro is 1.4800-1.4850

Today's expected range for the Canadian Dollar against Sterling is 1.8270-1.8340

The US Dollar is marginally weaker this morning in very quiet overnight trading conditions, today the US market is closed for the Memorial Day‎ holiday and the UK was closed was closed for the Spring Bank Holiday.

The election of Ukrainian  billionaire Petro Proshenko to the post of President ‎hopefully will bring some stability to the region. Already Russia has called for direct talks between Putin and Proshenko but at the same time Pro-Russian separatists have taken control of the airport in Donetsk so the situation is far from resolved.

In Europe, a wave of Anti-European political parties made gains in elections to the European Parliament (UK independence party in England and the FN party in France were the two major countries that elected far right parties but gains were also made in Denmark, Hungary and Greece), these politicians all call for more sovereign rule and less interaction with the EU and in France the Government called for an emergency cabinet meeting to discuss the situation. I would say this mood of the population has to worry EU senior officials going forward, and this all stems from the poor economic situation in Europe. For now the currency markets have not paid any attention to this issue as the Euro was slightly stronger overnight but with a wave of Anti-Europe sentiment sweeping the common market you may see the ECB take even greater action to stimulate the region’s economy next week.

The Canadian Dollar continues to hold onto is recent strength but continues to trade in narrow ranges, it continues to make gains both against the Euro and Sterling. With the US holiday I should not expect any movement today but we should see some increased volatility as the economic calendar heats up towards the end of the week.

Have a great week

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.086			1.0903
CAD/USD		0.9208			0.9149
EUR/USD		1.3639			1.3618
EUR/CAD		1.4813			1.4851
STG/CAD		1.8291			1.8362
AUD/CAD		1.0031			1.0056
CAD/JPY		93.8			93.46
CAD/CHF		0.8241			0.8218
CAD/HKD		7.1134			7.1066
CAD/CNY		5.7423			5.7159
CAD/MXN		11.8683			11.8467
Commodities
Gold		$1,294.00			$1,293.00
OIL		$104.02			$103.80
US DOLLAR INDEX
P.CLOSE		80.37			80.23
OPEN		80.3			80.42
US 10YR YIELD		2.53%			2.55%