GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.2480-1.2560

Today’s expected range for the Canadian Dollar against the Euro is 1.4280-1.4360

Today’s expected range for the Canadian Dollar against Sterling is 1.9080-1.9160

The US Dollar is marginally weaker this morning as the Euro has recovered from its move lower yesterday. Yesterday afternoon saw the European Central Bank make the announcement that they would no longer take Greek sovereign bonds as collateral from Greek Banks seeking funding, these banks will now have to turn to the Greek Central Bank for funding to keep them afloat. In addition this morning the German Finance Minister made the statement that there would not be any haircut given on the Greek bailout, it almost certainly looks like a showdown is coming between the EU and Greece possibly as soon as this month.

The Bank of England announced their most recent interest rate policy this morning, they kept interest rates at 0.5% and made no changes to their stimulus package, Sterling was able to have a small rally on this report.

The rally in the oil price came to an abrupt end yesterday as US oil inventories came in at a record level, further evidence that the supply is well outpacing demand, oil which had risen above $52 a barrel fell below $50. It has recovered somewhat this morning as it is back near the $50 price.

The Canadian Dollar recovered a bit against the Greenback last night after spending the most of the day yesterday losing ground. Nothing new here, the currency keeps tracking the movement in the oil price and will do so ahead of tomorrow’s employment report.

Trading ranges should be muted today ahead of the Employment reports tomorrow. We do get some trade data out of both the US and Canada, US data has tended to disappoint over the last week or so, if we get a poor US number then we may see the Dollar get hit.

Have a great day

Mike



 

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening			4pm Wednesday close
USD/CAD	1.2538				1.2435				1.2560
CAD/USD	0.7976				0.8041				0.7961
EUR/USD	1.1428				1.1452				1.1386
EUR/CAD	1.4322				1.4243				1.4302
STG/CAD	1.9092				1.892				1.9006
AUD/CAD	0.9789				0.9707				0.9768
CAD/JPY	93.59				94.44				93.3300
CAD/CHF	0.7398				0.7441				0.7349
CAD/HKD	6.1698				6.2134				6.1488
CAD/CNY	4.9864				5.0225				4.9726
CAD/MXN	11.8217				11.8282				11.8600
Commodities
Gold	$1,258.00				$1,265.00				$1,265.00
OIL	$48.90				$51.50				$48.87
US DOLLAR INDEX
OPEN	93.95				93.73				94.14
US 10YR YIELD	1.78%				1.77%				1.77%