GFX Morning Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.1530-1.1600

Today’s expected range for the Canadian Dollar against the Euro is 1.4350-1.4420

Today’s expected range for the Canadian Dollar against Sterling is 1.8160-1.8230

The US Dollar is marginally weaker this morning led by international flows back into Japan, since the decline in oil and equity markets it is funny how the currency market focus has moved away from the Euro, I don’t think I have written much about the Euro in the last few days.

Oil continued its plunge yesterday afternoon as it broke below the $60 a barrel level, overnight it trades as low as $58.79. We have seen little or no pullback in the price so given the current circumstances we should see further declines in the oil price which will put oil producing currencies under pressure.

With the lower price in oil yesterday the Loonie continued to weaken off against the US Dollar but it is also losing ground to the Euro and Sterling as those currencies have stabilized. With oil dropping towards $55 a barrel I would not be surprised if we hit 1.1600 shortly. Overall I think the Canadian Dollar is undervalued at these levels and we should see a pullback but you can’t stand in front of a freight  train so I think we let run for a while yet. I don’t think we will see much of a respite for US, Euro and Sterling buyers, you must be ready on even the most limited of pullbacks to make your purchases.

Up today we some inflation data out of the US (Producer Price Index) and Consumer Sentiment, I don’t think I twill have much effect on the market, currencies will continue to watch the oil market to get their direction

Have a great weekend

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1572			1.1476
CAD/USD		0.8641			0.8714
EUR/USD		1.2456			1.2458
EUR/CAD		1.4418			1.43
STG/CAD		1.8194			1.7995
AUD/CAD		0.958			0.9507
CAD/JPY		102.1			103.17
CAD/CHF		0.8326			0.84
CAD/HKD		6.6774			6.7335
CAD/CNY		5.3417			5.391
CAD/MXN		12.8936			12.6932
Commodities
Gold		$1,225.00			$1,223.00
OIL		$59.39			$61.58
US DOLLAR INDEX
P.CLOSE		88.59			88.24
OPEN		88.28			88.25
US 10YR YIELD		2.13%			2.15%