GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.1260-1.1330

Today’s expected range for the Canadian Dollar against the Euro is 1.4100-1.4170

Today’s expected range for the Canadian Dollar against Sterling is 1.8050-1.8220

The US Dollar is marginally stronger this morning with the biggest move coming against the Japanese Yen overnight. The announcement last week by the Japanese Central Bank to increase stimulus measures have continued to weaken the Yen pushing USD.YEN to a 7-year high, the Greenback was also helped higher overnight by poorer than expected Chinese manufacturing data. Both Euro and Sterling were a little weaker with EURO.USD still flirting with the 1.2500 level, I still look for the strong US Dollar trend to remain intact over the short and medium-term.

The Canadian Dollar still remains under pressure when compared to it US counterpart, we are basically at the level now to start the week where we closed on Friday but the Loonie did trade a bit weaker during the night before recovering back to current levels earlier this morning. There is a very strong chance that USD.CAD will once again test the highs above 1.1300 that we saw two weeks past at some point in the next couple of days.

We have a busy week on the economic front to start the new trading month. Up today we get some secondary US manufacturing data, Tuesday we get Canadian Trade data along with US Factory Orders. As the week progresses we get both EU and BOE interest rate announcements followed on Friday by both US and Canadian Employment reports, overall I think we will have a very volatile week, make sure you get your orders in early this week to take advantage of any potential moves.

Have a great month.

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1283			1.1195
CAD/USD		0.8863			0.8932
EUR/USD		1.2491			1.2574
EUR/CAD		1.4096			1.4079
STG/CAD		1.8053			1.7914
AUD/CAD		0.9849			0.9879
CAD/JPY		100.45			99.74
CAD/CHF		0.8549			0.8565
CAD/HKD		6.8514			6.9046
CAD/CNY		5.42			5.458
CAD/MXN		11.9633			11.9999
Commodities
Gold		$1,172.00			$1,173.00
OIL		$80.69			$80.39
US DOLLAR INDEX
P.CLOSE		86.98			86.17
OPEN		87.15			86.6
US 10YR YIELD		2.32%			2.32%