GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.1400-1.1460

Today’s expected range for the Canadian Dollar against the Euro is 1.4020-1.4080

Today’s expected range for the Canadian Dollar against Sterling is 1.7860-1.7940

The US Dollar is mixed this morning to start the new trading week, it is stronger against Euro, weaker against the Yen and Sterling unchanged against the Canadian Dollar. The Dollar got a bit of a boost against the Euro this morning as a report out of China showed imports fell unexpectedly in November, a report that also helped to push the price of a barrel of oil lower this morning. The Greenback hit a two year high against the Euro with the rate trading down to 1.2248 in London this morning, the Dollar is still getting a boost from Friday’s strong jobs report where the US economy created 300k new jobs last month beating the expected number by over 100k. This report provides more evidence that the strong US Dollar trend will remain intact for some time to come.

The Canadian Dollar is unchanged against it US counterpart this morning which with the price of oil falling to $64.22 is quite surprising that it has not lost more ground, when you compare the Loonie to other Petro currencies like Norway and Mexico it is hanging in there. The Loonie did lose some ground on Friday as our Employment report was not as rosy as the US report, we lost 10k jobs and the Unemployment rate ticked higher.

It is a lighter week this week on the economic front with the highlight being US Retail Sales report on Thursday and the Bank of Canada economic review on Wednesday, lots of secondary data along the way as well. I would expect that we will have more of the same this week, the strong US Dollar trend against the major currency pairs and the Canadian Dollar will remain range bound but will be watching the price of oil to get its direction.

Have a great week

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1438			1.141
CAD/USD		0.8742			0.8764
EUR/USD		1.2261			1.2348
EUR/CAD		1.4025			1.4092
STG/CAD		1.7863			1.7896
AUD/CAD		0.9498			0.9546
CAD/JPY		105.82			105.08
CAD/CHF		0.857			0.8527
CAD/HKD		6.7554			6.7727
CAD/CNY		5.3946			5.3891
CAD/MXN		12.6132			12.4344
Commodities
Gold		$1,195.00			$1,202.00
OIL		$64.20			$66.10
US DOLLAR INDEX
P.CLOSE		89.31			88.62
OPEN		89.39			88.89
US 10YR YIELD		2.32%			2.26%