GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0720-1.0750

Today’s expected range for the Canadian Dollar against the Euro is 1.4480-1.4530

Today’s expected range for the Canadian Dollar against Sterling is 1.8340-1.8390

The US Dollar is stronger this morning as the release of the Black Boxes and the remains of downed flight have been turned over to international officials. The Euro was the weakest of the Western currencies as it dropped below the 1.3500 level for the first time in months against the US Dollar. The Dollar seems to be getting a boost from a rise in short-term US treasury yields which could put pressure on the Federal Reserve to increase interest sooner than expected.

Nothing to report on USD.CAD, it is still stuck in very tight trading ranges and most likely will remain so until volatility improves after the summer. The Loonie continues to move back and forth against both the Euro and Sterling but at the very least continues to hold onto its recently acquired strength.

Up today we could see some movement as we get the release of the June US inflation report. We are expecting an annualized inflation rate of 2.1% (same rate as May), anything above that rate will get bond investors excited and pushing for higher US rates which will give the Greenback a boost and push USD.CAD higher, if it is lower than expected  we could see USD.CAD try and move back below 1.0700

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0745			1.0744
CAD/USD		0.9307			0.9307
EUR/USD		1.348			1.352
EUR/CAD		1.4489			1.4529
STG/CAD		1.8347			1.8355
AUD/CAD		1.004			1.0077
CAD/JPY		94.47			94.26
CAD/CHF		0.8383			0.8357
CAD/HKD		7.1912			7.1926
CAD/CNY		5.7709			5.776
CAD/MXN		12.0833			12.0846
Commodities
Gold		$1,307.00			$1,315.00
OIL		$105.06			$102.96
US DOLLAR INDEX
P.CLOSE		80.56			80.61
OPEN		80.73			80.56
US 10YR YIELD		2.48%			2.48%