GFX Morning FX Commentary

Good Morning,

 

Today’s suggested range for the Canadian dollar against the US is 1.1325 – 1.1400

 Today’s suggested range for the Canadian dollar against the Euro is 1.4325 – 1.4425

 Today’s suggested range for the Canadian dollar against Sterling is 1.8050 – 1.8150

 

The US dollar uptrend remains intact as concerns about global growth and deflation undermine the mood of the markets. The Canadian dollar was the big loser overnight hit by the strength of the  greenback and the plunge in oil prices. When the Canadian dollar is being matched against a volatile commodity like oil the currency price swings are huge. The market is closely watching a breach in oil below $80 as many projects tied to the oil sands could be shelved.

 The mood in Europe remains fragile with recession and deflation talk. The European single currency seems to be consolidating on the EUR/USD 1.2600 handle for the time being. The British pound has bounced off its lows from overnight on a better than expected U.K. labour report showing the unemployment rate dropped to 6.0% from 6.2% the lowest level since October 2008.

 The economic calendar today is dominated by U.S. data. The Empire manufacturing for October, Producer price index and  the important retail sales figure for September are out at 8:30am. The U.S. retail sales is expected to drop 0.1% from the previous months gain of 0.6%. This afternoon the U.S. Fed Beige book is released giving an economic snapshot of the different regions around the country. In Canada we have existing home sales due out at 9am.

Dow futures are pointing lower by 75 points in pre-market with oil lower at $80.70 the U.S. 10yr. Treasury yield is steady at 2.20%.

 

Have a great day!

 

GFX Morning Currency Rates
Wednesday October 15, 2014
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1363			1.1256
CAD/USD		0.88			0.8884
EUR/USD		1.264			1.2648
EUR/CAD		1.437			1.4238
STG/CAD		1.81			1.7951
AUD/CAD		0.9909			0.9817
CAD/JPY		94.36			94.9
CAD/CHF		0.8403			0.8483
CAD/HKD		6.8036			6.87
CAD/CNY		5.3881			5.4394
CAD/MXN		11.8623			11.9849
Commodities
Gold		$1,224.00			$1,233.00
OIL		$80.51			$84.84
US DOLLAR INDEX
P.CLOSE		85.79			85.91
OPEN		85.93			85.76
US 10YR YIELD		2.20%			2.21%