GFX Morning Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.1945-1.2020

Today’s expected range for the Canadian Dollar against the Euro is 1.4100-1.4170

Today’s expected range for the Canadian Dollar against Sterling is 1.8150-18220

The US Dollar is stronger this morning, the Greenback was led higher by a weak British Pound. In the UK the lowest inflation reading in over 15 years helped push the Pound lower, there is no way that the Bank of England can increase interest rates when the threat of deflation is looming over the economy. BOE Governor Mark Carney will know have to send a letter to the Chancellor of the Exchequer (British Finance Minister)to explain why inflation is running so low.

The price of oil continues to drop lower reaching $44.18 a barrel. Overnight the Saudi Oil Minister was seen defending OPEC’s most recent decision not to cut production, with this kind of rhetoric it is unlikely that we will see a significant rise in oil prices anytime soon. The effect of low oil prices is clearly being seen in the Canadian stock markets with oil producers all taking big hits to their stock price. At some point these stocks will be good buys but I think there is a lot more pain to be had first.

A tough day for the Loonie yesterday as it dropped over 100 points to the US Dollar and now 1.2000 is easily reachable for USD.CAD. There is nothing technically significant about the 1.2000 level, I would imagine that there will be a lot of sellers lining up at that level just because it is a psychological level it may take a few tries to get through.

Nothing of note today on the economic calendar so look for USD.CAD to test higher at some point as oil and stocks both remain under pressure.

Have a great day.

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening			4pm close January 12, 2015
USD/CAD	1.1978				1.1877				1.1965
CAD/USD	0.8349				0.842				0.8358
EUR/USD	1.1789				1.1801				1.1834
EUR/CAD	1.4126				1.4016				1.4167
STG/CAD	1.8135				1.7976				1.8159
AUD/CAD	0.9759				0.97				0.9762
CAD/JPY	99				100.37				98.56
CAD/CHF	0.8497				0.8566				0.8477
CAD/HKD	6.45				6.5074				6.457
CAD/CNY	5.175				5.2221				5.1829
CAD/MXN	12.24				12.3369				12.27
Commodities
Gold	$1,239				$1,220				$1,233.00
OIL	$44.62				$47.27				$45.90
US DOLLAR INDEX
OPEN	92.29				92.24				92.02
US 10YR YIELD	1.89%				1.97%				1.91%