GFX Morning FX Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0830-1.0880

Today's expected range for the Canadian Dollar against the Euro is 1.4310-1.4360

Today's expected range for the Canadian Dollar against Sterling is 1.8000-1.8150

The US Dollar is marginally weaker as the currency market sets set up for the release of the Canadian GDP report. Both the Euro and Sterling are at the same level against the US Dollar as when we closed last night,  the currency markets are on the sidelines until we get the US growth report later this morning. If we get a strong number then we should see the Greenback appreciate both against the Euro and Sterling.

The Canadian Dollar had a wild ride yesterday as USD.CAD smashed lower, most market pundits are putting it down to the fact that one US based bank was buying loads of Canadian dollars quite possibly for the Tim Horton’s deal. If this is true then this move for the Canadian Dollar will be short-lived as the recent trend of US Dollar strength will once again take USD.CAD higher, if it is the start of a resurgence for the Loonie then US Dollar buyers should still be looking to purchase some at these levels, if the Loonie rises some more then look to improve the average rate of your purchases.

As mentioned up today we get the US GDP report for July and we are expecting an annualized growth rate of 3.9% which would be down slightly from the 4.0% last month. A number stronger than this will see USD.CAD go back to 1.0900 and a weak number may give the Loonie some impetus to move towards 1.0800.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0862			1.0897
CAD/USD		0.9206			0.9177
EUR/USD		1.3173			1.318
EUR/CAD		1.4317			1.4365
STG/CAD		1.8015			1.8062
AUD/CAD		0.984			101.82
CAD/JPY		95.46			95.33
CAD/CHF		0.8422			0.8406
CAD/HKD		7.7301			7.0905
CAD/CNY		5.6573			5.637
CAD/MXN		12.0555			11.9867
Commodities
Gold		$1,294.50			$1,286.90
OIL		$93.85			$94.11
US DOLLAR INDEX
P.CLOSE		82.69			82.69
OPEN		82.51			82.58
US 10YR YIELD		2.33%			2.37%