GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.1065-1.1125

Today’s expected range for the Canadian Dollar against the Euro is 1.4160-1.4220

Today’s expected range for the Canadian Dollar against Sterling is 1.7980-1.8050

The US Dollar is unchanged this morning but it did suffer a wild ride yesterday afternoon and it was not able to recover overnight. In the minutes from the Federal Reserve last policy meeting, the committee indicated that when they do decide to increase interest rates any increase will be very minimal and gradual in nature, they indicated that they were also concerned the high value of the US Dollar may hurt the US export market. This announcement spooked the currency market pushing the US Dollar lower across the board while stock markets loved it with the Dow Jones Industrial Average closing some 274 points after trading much weaker for most of the day. Clearly even with the strong recovery in the US the Federal Reserve is treating the US economy with great care and still consider the recover very fragile in nature.

This morning saw the Bank of England keep it interest rates at current levels and did not make any changes to their stimulus program. As this was expected Sterling did not have much of a reaction to the news, Sterling traders will look to the BOE minutes in a couple of weeks to get a gauge of where the UK economy is going.

The Canadian Dollar had a quiet night last night but as mentioned above it did have a great afternoon with USD.CAD dropping almost a full point on the release of the Federal Reserve minutes. As nothing fundamental has changed for the Loonie I would make the suggestion that US Dollar buyers take advantage of this move by placing some orders, we have seen in the past few weeks just how quickly USD.CAD can move back higher and this yet may be another example. If tomorrow’s Canadian Employment report disappoints the rate will quickly be back above 1.1200.

Up today we have some trade data out of the States but for the most part I think It will be a quiet day ahead of tomorrow’s all important Employment Report.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.11			1.1168
CAD/USD		0.9004			0.8954
EUR/USD		1.2754			1.2657
EUR/CAD		1.416			1.4139
STG/CAD		1.7991			1.7959
AUD/CAD		0.9857			0.9811
CAD/JPY		96.98			96.95
CAD/CHF		0.8552			0.8577
CAD/HKD		6.9645			6.925
CAD/CNY		5.5205			5.4957
CAD/MXN		11.997			12.0846
Commodities
Gold		$1,229.00			$1,217.00
OIL		$87.28			$87.98
US DOLLAR INDEX
P.CLOSE		85.25			85.58
OPEN		85.11			85.69
US 10YR YIELD		2.30%			2.35%