GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.1280-1.1330

Today’s expected range for the Canadian Dollar against the Euro is 1.4100-1.4150

Today’s expected range for the Canadian Dollar against Sterling is 1.7800-1.7850

The US Dollar is marginally weaker this morning as comments from US Federal Reserve committee member Dudley urging investors to be patient about future US interest rate hikes spooked the currency market a little. I don’t think his particular view on interest rates is the common one among the Fed’s voting members so I would not be surprised if the pullback for the Greenback is short-lived. The Aussie Dollar was the big mover overnight as the Reserve Bank their hinted at possible intervention in the currency markets to help weaken the local Dollar and in the UK the Pound is a bit weaker falling to its lowest level in a year against the US Dollar as the UK economy reported a further drop in their property market.

The Canadian Dollar is unchanged against the US Dollar this morning but because the Loonie has stalled its losses against the Greenback it has been able to make some gains against both the Euro and Sterling. With the current weakness of Sterling, GBP.CAD has been able to drop to the 1.7800 level the lowest it has been in months and the trend looks like that will continue. I am still not convinced that the Greenback is getting ready to turn to the weak side so I still advocate that US Dollar buyers still look to purchase on any US Dollar dips.

Nothing of note out today on the economic calendar, We do get the Bank of Canada review today which should not contain any surprises and should not affect the currency market, it will just highlight the fact that the Bank thinks young people in the country should work for free, the market is getting set up for the US Retail Sales report due out tomorrow morning.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1308			1.1319
CAD/USD		0.8843			0.8778
EUR/USD		1.2463			1.2462
EUR/CAD		1.4095			1.4109
STG/CAD		1.782			1.7932
AUD/CAD		0.9887			0.9863
CAD/JPY		102.25			101.8
CAD/CHF		0.8523			0.8522
CAD/HKD		6.836			6.8278
CAD/CNY		5.4137			5.4105
CAD/MXN		12.0118			12.033
Commodities
Gold		$1,161.00			$1,162.00
OIL		$76.72			$77.34
US DOLLAR INDEX
P.CLOSE		87.81			87.52
OPEN		87.68			87.62
US 10YR YIELD		2.37%			2.33%