GFX Morning Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0950-1.1020

Today’s expected range for the Canadian Dollar against the Euro is 1.4140-1.4220

Today’s expected range for the Canadian Dollar against Sterling is 1.7930-1.8000

The US Dollar is  marginally weaker this morning as the currency markets prepare for the results of the Scottish referendum and react to the US Federal Reserve comments from yesterday. In their statement the Fed left the words “considerable time” in place which most market watchers now think means the Fed won’t increase interest rates until at least June, there is still lots of slack in the US economy and lots of jobs yet to be created before the Fed changes policy.

The polls are now open in Scotland but according to news reports we are not expecting final results until around Midnight/1:00 am Toronto time, keep in mind a yes vote will bring increased volatility to the currency markets affecting all currency pairs including USD.CAD. If you want to take away some of the uncertainty of the market make sure that you get your orders in early.

The Canadian dollar had a busy night trading in a  wide range with the Loonie giving up some of its gains from yesterday, as I mentioned yesterday I was not surprised that the Loonie could not hold onto the strength it had from the Poloz comments, that type of movement rarely holds in place for long. The Loonie continues to hold in against the Euro and Sterling as it continues to benefit from weakness in those currencies.

In addition to the Vote we get some secondary US data but overall we should have a relatively stable day but I would expect a very busy night, on a yes vote there is no reason not to think that we could see USD.CAD above 1.1100 tomorrow.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.098			1.0965
CAD/USD		0.9107			0.912
EUR/USD		1.2877			1.2955
EUR/CAD		1.414			1.4206
STG/CAD		1.793			1.7878
AUD/CAD		0.9847			0.994
CAD/JPY		98.95			97.85
CAD/CHF		85.4			0.8517
CAD/HKD		7.0395			7.0484
CAD/CNY		5.5912			5.5968
CAD/MXN		12.0592			12.0269
Commodities
Gold		$1,224.00			$1,238.00
OIL		$94.38			$94.77
US DOLLAR INDEX
P.CLOSE		84.6			84.07
OPEN		84.55			84.07
US 10YR YIELD		2.61%			2.57%