GFX Morning FX Commentary

Good Morning,

 

Today’s suggested range for the Canadian dollar against the US is 1.1200– 1.1270

Today’s suggested range for the Canadian dollar against the Euro is 1.4190– 1.4290

 Today’s suggested range for the Canadian dollar against Sterling is 1.7960 – 1.8060

 

The US dollar index is mixed from our close in uneventful trading ahead of the two day summit of EU leaders beginning today. I can’t help but wonder if the markets won’t become more cautious and nervous following the deadly attack in our Nation’s Capital. Our thoughts and prayers go out to the family and friends of our fallen soldier.

 

The British Pound was hit following worse than expected retail sales for September falling 0.3% m/m versus a 0.1% drop. It appears the economic slowdown is stretching beyond the Eurozone borders. The Euro gained against Sterling as Eurozone PMI data was more upbeat than anticipated but gains were limited ahead of the EU Summit.

 

The Canadian dollar was more orderly overnight contained to narrow ranges after a volatile session yesterday. The Bank of Canada dropping the neutral language from their monetary policy statement was a big surprise for the market suggesting that the next move in interest rates will be higher. The overall tone from the BOC was more upbeat but the strong gains in the currency were quickly evaporated from the deadly attack in Ottawa.

 

The economic calendar in Canada is empty for the rest of the week so much of the direction will come from the equity and commodity moves. The price of oil is still hovering above the psychological level of $80.00 with any move lower will have a negative effect on the currency. In the U.S. today we have the release of jobless claims ,Markit US Manufacturing PMI and leading indicators. Dow futures are pointing higher by 100 so it already appears the market has put behind the deadly attack of yesterday which will be CAD dollar positive.

 

Have a nice day!