GFX Morning Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0695-1.0745

Today's expected range for the Canadian Dollar against the Euro is 1.4570-1.4620

Today's expected range for the Canadian Dollar against the Euro is 1.8240-1.8290

The US Dollar is mixed  this morning as the currency markets react to the ‎horrible GDP report produced yesterday. In the first quarter of this year the US economy retracted some 2.9% which was far worse that the expectation.

The Pound approached a five-year high against the Greenback as the Bank of England announced measures to cool the rise in mortgage debt that is threatening the UK recovery. In Europe every time the Euro tries to get stronger it gets hit and falls back, I think once it breaks below the 1.3600 level and stay below then it will run lower.

The Canadian Dollar is again stronger this morning on the back of the weaker US Dollar, it looks like USD.CAD is set to make a multi-month low this morning.

Up today we have US Personal Income and Expenditures due to be released,  I don’t think they will have a big effect on the currency market. I look for the USD.CAD to trade much like it did yesterday, kind of hang around current levels and then slowly dip during the afternoon time frame. I think the markets will start to wind down tomorrow as more and more people will take tomorrow and Monday off for the Canada day holiday.

Have a great day
Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0709			1.0732
CAD/USD		0.9338			0.9318
EUR/USD		1.3612			1.3602
EUR/CAD		1.4581			1.4604
STG/CAD		1.8234			1.8222
AUD/CAD		1.0082			1.0052
CAD/JPY		94.94			94.9
CAD/CHF		0.834			0.8326
CAD/HKD		7.216			7.1979
CAD/CNY		5.8111			5.8061
CAD/MXN		12.174
Commodities
Gold		$1,311.00			$1,314.00
OIL		$106.32			$106.55
US DOLLAR INDEX
P.CLOSE		80.26			80.31
OPEN		80.22			80.4
US 10YR YIELD		5.56%			5.58%