GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.1140-1.1200

Today’s expected range for the Canadian Dollar against the Euro is 1.4070-1.4130

Today’s expected range for the Canadian Dollar against Sterling is 1.8090-1.8150

The US Dollar is much stronger this morning as slowing inflation in the Euro-Zone gave the Greenback a big boost, EURO.USD went from a high of 1.2690 just before the number and is now trading at 1.2570, a drop of almost 1%. Despite revised strong growth data out of the UK, Sterling is also lower against the Dollar but it did make some gains against the Euro highlighting the different directions the two economies are taking. Look for more stimulus measures from the ECB this week to fight off the fear of deflation when they make their interest rate announcement on Wednesday.

USD.CAD continues to be dragged higher as a result of the very strong US Dollar, right now it does not look like there is any signs of it stopping or pulling back,  US Dollar buyers need to be cognizant of this and look for any opportunity to buy some forward contracts whenever we get a dip in the rate.

Up today we get the release of the Canadian GDP report for July, we are expecting a growth rate of 0.3% (year over year 2.8%, last 3.1%), not very spectacular numbers that are going to inspire confidence in the Canadian economy. A weaker number may give us the push to get near the 1.1200 level this morning.

Have a great day.

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.117			1.1147
CAD/USD		0.8951			0.8971
EUR/USD		1.2594			1.2683
EUR/CAD		1.4071			1.4139
STG/CAD		1.8087			1.8091
AUD/CAD		0.9751			0.9736
CAD/JPY		98.11			98.75
CAD/CHF		0.8571			0.8533
CAD/HKD		6.9311			6.9448
CAD/CNY		6.4924			5.5176
CAD/MXN		12.1003			12.1287
Commodities
Gold		$1,209.00			$1,227.00
OIL		$94.66			$93.04
US DOLLAR INDEX
P.CLOSE		85.6			85.76
OPEN		86.02			85.68
US 10YR YIELD		2.51%			2.52%