GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.1275-1.1340

Today’s expected range for the Canadian Dollar against the Euro is 1.4130-14180

Today’s expected range for the Canadian Dollar against Sterling is 1.7690-1.7740

The US Dollar is marginally stronger this morning as it is led by the Japanese Yen once again, pressure of an election call continues to weigh on the Yen pushing USD.JPY to new multi-year highs. Japan did report a 1.6 decline in growth in the third quarter and in the last three months the economy has contracted by 7.3%, these are some pretty tragic numbers and almost certainly will lead the Government to take further stimulus action.

It was interesting to note that the recent G-20 meeting in Australia did not produce anything concrete with the exception of Prime Minister Harper kicking the Russian Bear, look for more Russian bombers to fly over the north in the coming weeks and months.

The Canadian Dollar is a bit weaker this morning as it reacts to the overall stronger Greenback, the Loonie had a good day on Friday but has so far has given back about half those gains. Once again whenever we see the Canadian Dollar rally it is always short-lived  and the rate bounces back higher, make sure you have orders in place to take advantage of any further pullbacks.

This is inflation week in North America with both Canada and the US reporting inflation data, we get the Federal Reserve minutes from their last meeting  and we get a slew of secondary US and Canadian data.  It should be an active week as the last few have been, I think we will range trade to start the week but for the most part the strong US trend should remain intact.

Have a great week

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1306			1.1357
CAD/USD		0.8842			0.8805
EUR/USD		1.2488			1.2444
EUR/CAD		1.4126			1.4137
STG/CAD		1.7691			1.7785
AUD/CAD		0.987			0.9873
CAD/JPY		102.8			102.48
CAD/CHF		0.8501			0.8495
CAD/HKD		6.8359			6.8037
CAD/CNY		5.417			5.3961
CAD/MXN		12.0144			12.0165
Commodities
Gold		$1,187.00			$1,151.00
OIL		$75.17			$74.33
US DOLLAR INDEX
P.CLOSE		87.53			87.74
OPEN		87.72			87.94
US 10YR YIELD		2.30%			2.35%