GFX Morning Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.1000-1.1060

Today’s expected range for the Canadian Dollar against the Euro is 1.4270-1.4330

Today’s expected range for the Canadian Dollar against Sterling is 1.7920-1.7980

The US Dollar is for the most unchanged overnight part as I think currency markets are taking a breather after such a volatile week. The biggest mover overnight was the Australian dollar was weaker as it hit parity to the Canadian Dollar, it has been a few months since it has hit that level.

Currency traders are on the sidelines at the moment ahead of today’s US Retail Sales for August, we are expecting a slight increase in the number so the good economic reports out of the States is expected to continue. Traders will also be watching the final weekend in Scotland before the polls on the 18^th. If it is anything like the Quebec referendum this weekend will be full of rallies, flag flying and lots of speeches. I still think that the no campaign will prevail as there is too much pressure building ahead of the vote. This Scottish vote is having unforeseen consequences in other areas of Europe, in Northern Ireland the Unionists are sending a large delegation to Scotland for rallies and speeches supporting the No side, the fear is that a yes vote will embolden Nationalists in the North of Ireland to push through their own referendum. In Barcelona, the Catalonian regional government have said they want to follow Scotland’s lead and they have scheduled a referendum vote in November, a vote that the Spanish Government in Madrid has said they will stop, very interesting times indeed.

The Canadian Dollar is unchanged from our close yesterday against the US Dollar as it did weaken off during most of the afternoon, with only US Retail Sales and Consumer Confidence due out today I would think that USD.CAD would take a break as well and remain in tight ranges. We have come a long way this week so a pause and small pullback may be on the cards. Overall I still think that USD.CAD has some room to run so US Dollar buyers need to be concerned about the rate moving away from them over the next few weeks.

Have a great weekend

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1046			1.1
CAD/USD		0.9053			0.9091
EUR/USD		1.2927			1.2919
EUR/CAD		1.4277			1.4213
STG/CAD		1.7954			1.7873
AUD/CAD		1			1.0031
CAD/JPY		96.99			97.36
CAD/CHF		0.8462			0.8511
CAD/HKD		6.9935			7.0651
CAD/CNY		5.5521			5.5728
CAD/MXN		11.9927			12.0163
Commodities
Gold		$1,238.00			$1,242.00
OIL		$93.14			$90.54
US DOLLAR INDEX
P.CLOSE		84.31			84.23
OPEN		84.31			84.27
US 10YR YIELD		2.56%			2.53%