GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.1160-1.1240

Today’s expected range for the Canadian Dollar against the Euro is 1.4080-1.4150

Today’s expected range for the Canadian Dollar against Sterling is 1.7920-1.7990

The US Dollar is marginally weaker against Sterling and the Euro but dramatically stronger against the Japanese Yen this morning. In the Overnight session the Bank of Japan announced a new stimulus package for the country and the countries pension plans stated they would be putting more money into stocks and less into bonds. As you could imagine Equity Markets around the world have jumped higher on this news, in particular the Japanese Nikkei market almost jumped 5%. In Europe recent stimulus measures were somewhat rewarded this morning as the Euro inflation rate jumped 0.4% last month which was slightly better than the market expectation and should give the deflation concerns a bit of a rest. Unemployment is still another problem in Europe as EU unemployment rate remained at 11.5%, imagine what the real number actually is!

The Canadian Dollar traded in a narrow range against the US last night losing a tiny bit of ground but for the most part it is still range bound in light trading, the Loonie did lose the strength that it had picked up when the US GDP report came out yesterday.  As you would expect the Loonie did make great gains against the Yen going from 97.70 before the announcement trading up near 100.00 afterwards. If any clients need to buy Yen you may want to take advantage of this new rate.

Trading today will be dominated by the Canadian GDP report for August, we are expecting a flat growth rate, (0.0% same as last month) and a yearly growth rate of 2.3% (down from last month’s 2.5%). When you factor in an inflation rate at 2.0% there is virtually no real growth in the Canadian economy and if the price of oil keeps dropping it will only push the economy down further, not a pretty picture for sustained growth in the Canadian Dollar.

Have a great weekend and a very scary Halloween.

Mike

 

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1195			1.1193
CAD/USD		0.8932			0.8934
EUR/USD		1.2574			1.2591
EUR/CAD		1.4079			1.4098
STG/CAD		1.7914			1.7913
AUD/CAD		0.9879			0.9841
CAD/JPY		99.74			97.31
CAD/CHF		0.8565			0.8598
CAD/HKD		6.9046			6.9092
CAD/CNY		5.458			5.4606
CAD/MXN		11.9999			12.065
Commodities
Gold		$1,173.00			$1,205.00
OIL		$80.39			$81.34
US DOLLAR INDEX
P.CLOSE		86.17			86.01
OPEN		86.6			85.25
US 10YR YIELD		2.32%			2.31%