GFX Morning FX Commentary

Good Morning,

 

Today’s suggested range for the Canadian dollar against the US dollar is 1.1180 – 1.1280

 Today’s suggested range for the Canadian dollar against the Euro is 1.4350 – 1.4450

 Today’s suggested range for the Canadian dollar against Sterling is 1.8060 – 1.8160

 

A much welcomed relief rally for stocks ahead of the weekend in Europe. The Japanese market was the lone exception with the Nikkei dropping 1.4% with 2yr. Japanese Government bonds making new record lows. The Japanese Yen lost value as the demand for safe haven assets was pared back on global stock gains.

 

The market remains fragile and nervous but yesterday’s reassuring comments from U.S. Fed member Bullard that the U.S. Federal Reserve should consider delaying the end of quantitative easing when their next meeting is scheduled for October 29^th  helped sooth the market. The US dollar has retreated against most of the major currencies with less volatility overnight.

 

The Canadian dollar was held to narrow ranges overnight as the market recovers from a tumultuous week of price swings. The US dollar uptrend is still intact with any further pull backs seen as a buying opportunity for CAD importers.

The important CAD CPI(inflation) data is due out this morning at 8:30am for September. CPI is expected to climb 0.2% in the month with the inflation rate holding at 2.1% for the year unchanged from the previous month.

 

The Dow futures are pointing higher by 185 ahead of U.S. housing starts and building permits for September. The price of gold is slightly lower while oil recovered further to $84.00. If the price of oil can stabilize around current levels we could see a further correction in the CAD.

 

Have a great weekend!

 

GFX Morning Currency Rates
Friday October 17, 2014
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1232			1.1338
CAD/USD		0.8903			0.882
EUR/USD		1.2811			1.2733
EUR/CAD		1.4394			1.4443
STG/CAD		1.8085			1.813
AUD/CAD		98.68			0.9882
CAD/JPY		94.8			93.18
CAD/CHF		0.8386			0.8345
CAD/HKD		6.88			6.8199
CAD/CNY		5.4495			5.3997
CAD/MXN		12.0364			12.0468
Commodities
Gold		$1,237.00			$1,242.00
OIL		$84.87			$80.32
US DOLLAR INDEX
P.CLOSE		84.95			84.98
OPEN		84.87			85.32
US 10YR YIELD		2.19%			2.02%