Thursday 4 December 2014

GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.1340-1.1400

Today’s expected range for the Canadian Dollar against the Euro is 1.3990-1.4050

Today’s expected range for the Canadian Dollar against Sterling is 1.7820-1.7880

The US Dollar is marginally stronger this morning as the currency markets get set for Central Bank announcements this morning. The Greenback reached its highest level since July of 2007 against the Japanese Yen as it traded within a hair of the 120.00 level, Japan will stay in recession for a while yet so the Yen will remain under pressure. In Europe the Euro is slightly weaker as speculation grows that they ECB will announce more stimulus measures this morning to try and help that economy, all currency markets will be watching what ECB Governor Draghi announces in his speech this morning. The Bank of England also announces on interest rates this morning but they are not expected to make any changes to their policy.

Not much overnight change in USD.CAD, yesterday the Loonie did make some small gains on the Bank of Canada comments, in the middle of their text there were veiled comments about the output Gap ( a measure of capacity in the economy) reducing quicker than they had expected, a comment most market pundits have taken to mean that interest rates hikes may happen sooner than later next year. Oil continues to stabilize between $66 and $69 for the moment so that should give the Loonie some time to regroup and find its next direction.

With the only economic news of note the two Central Bank announcements USD.CAD should remain subdued today as the currency markets focus on the Euro, if the ECB announces a major new stimulus plan then you may see the Loonie make some strides against the Euro.

Have a great day
Mike


GFX Morning Currency Rates






 






Currencies

7:00am Today's Opening


Yesterday's Opening










USD/CAD


1.1352



1.1382



CAD/USD


0.8809



0.8785



EUR/USD


1.2307



1.2325



EUR/CAD


1.3975



1.4028



STG/CAD


1.7798



1.7825



AUD/CAD


0.9506



0.9581



CAD/JPY


105.58



104.92



CAD/CHF


0.8606



0.8574



CAD/HKD


6.8054



6.7897



CAD/CNY


5.4234



5.4005



CAD/MXN


12.4392



12.4227



Commodities
















Gold


$1,202.00



$1,200.00



OIL


$67.33



$67.24











US DOLLAR INDEX








P.CLOSE


88.96



88.62



OPEN


88.97



88.85











US 10YR YIELD


2.28%



2.29%










 


 

 

 

 

 

 

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