GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.1580-1.1640

Today’s expected range for the Canadian Dollar against the Euro is 1.4240-1.4280

Today’s expected range for the Canadian Dollar against Sterling is 1.8140-1.8200

The US Dollar is slightly weaker this morning as comments by the Saudi Oil Minister have helped push the Euro a little higher. In his comments Saudi Oil Minister Ali Al-Naimi stated that the move in oil prices was overdone and the oil market will recover. The comments have not had that much of an effect on the price of oil as we are only slightly higher than where we closed on Friday.

In other overnight news the Russian Ruble continued to make some gains on the back of 17% interest rates but also on the back of the Chinese Government offering more support for Russia.

The Canadian Dollar is weaker this morning against the US Dollar as the Loonie was not able to take advantage of the stronger price of oil overnight. Once again nothing that I see just yet indicates a short-term reversal of fortune for the Loonie, it should remain weak going into the New Year. I did read with interest that hedge funds that speculate in the currency markets on average have reduced their bets that that US Dollar will appreciate in the coming weeks, I will watch this to see if it becomes a trend.

With the Christmas holidays upon us the only economic release of significance is tomorrow’s release of the US GDP report for the third quarter, given that trading conditions will be thin due to banks having reduced staff this week we could see some enhanced volatility. A quick reminder that we will be closing our office at noon on the 24^th and that we will be closed for the 25^th and 26th, if you need any wires or cheques please get your orders in early and we will get them out.

Have a great week

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening			4:30pm December 17th Closing Rates
USD/CAD	1.1608				1.1594				1.1609
CAD/USD	0.8615				0.8625
EUR/USD	1.2257				1.2271				1.2231
EUR/CAD	1.4231				1.4279				1.4203
STG/CAD	1.8129				1.8125				1.8146
AUD/CAD	0.9464				0.9472				0.9447
CAD/JPY	103.11				102.94				102.84
CAD/CHF	0.8453				0.8457				0.847
CAD/HKD	6.6613				6.6678				6.6572
CAD/CNY	5.3603				5.3662				5.3549
CAD/MXN	12.5591				12.587				12.5617
Commodities
Gold	$1,196.30				$1,197				$1,195.00
OIL	$57.13				$54.95				$56.52
US DOLLAR INDEX
OPEN	89.71				$89.39				89.8
US 10YR YIELD	2.17%				2.20%				2.16%