GFX Morning Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.2400-1.2480

Today’s expected range for the Canadian Dollar against the Euro is 1.3900-1.3980

Today’s expected range for the Canadian Dollar against Sterling is 1.8630-1.8700

The US Dollar is stronger this morning as it continues to benefit from the meltdown in the Euro. This morning Euro stocks have soared on the ECB announcement but the same cannot be said about the Euro, it has dropped to a new low of 1.1150 and it certainly it looks like it wants to go lower still. The Euro could be seeing some influence from the Greek elections on Sunday where the Syriza party are expected to win a majority government. Could we parity in the future for the Euro against the US Dollar? The last time that happened was when the Euro was first formed.

The Canadian Dollar was again weaker overnight as USD.CAD starts its march towards 1.2500, there appears to be no end in sight to the weakness of the Loonie at the moment. With the weakness in the Euro outpacing the Loonie last night we were able to pick up some ground against the Euro with EURO.CAD dropping to trade below 1.3900

Up today we have some secondary data out of the US and Canadian inflation data for the month of December, quite frankly unless the CPI data surprises to the high side I don’t think the market will even look at the number, it will remained focused on the Euro and what will happen in the coming week. Look for the US Dollar to stay bid and USD.CAD to test higher.

Have a great weekend

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening			4pm close January 22, 2015
USD/CAD	1.2408				1.2335				1.2408
CAD/USD	0.8059				0.8107				0.8059
EUR/USD	1.1216				1.164				1.1350
EUR/CAD	1.3917				1.4345				1.4065
STG/CAD	1.8583				1.8717				1.8599
AUD/CAD	0.9878				1.0013				0.9938
CAD/JPY	0.9501				95.34				95.5300
CAD/CHF	0.7041				0.6934				0.7038
CAD/HKD	6.2264				6.2665				6.2249
CAD/CNY	5.0183				5.0336				5.0012
CAD/MXN	11.8448				11.9379				11.8284
Commodities
Gold	$1,295				$1,286				$1,300.00
OIL	$47.10				$48.71				$46.50
US DOLLAR INDEX
OPEN	94.95				92.87				94.37
US 10YR YIELD	1.82%				1.91%				1.89%