Today’s
expected range for the Canadian Dollar against the US Dollar is 1.0200-1.0300
Today’s
expected range for the Canadian Dollar against the Euro is 1.3570-1.3670
Today’s
expected range for the Canadian Dollar against Sterling is 1.5950-1.6050
The
US Dollar continued its recent trend of weakness last night and with most of
the currency action focusing in the Far East where Japanese politicians where
once again opening their big mouths and causing havoc with the currency market.
In japan, Japanese Finance Minister Taro Abe told reporters that he has no plan
to intervene in the currency markets to support the Yen, this comment caused currency
traders that were short the Yen to run to cover their losses and forced USD.JPY
down another 1%, this was after the 2.5%
drop yesterday. These comments by Abe fly in the face of stated Japanese policy
of a weak Yen to help stimulate the economy, I am sure executives at Toyota and
Honda are not very happy at the moment. Right now the rapid rise in the value
of the Yen is crushing the US Dollar across the board and hurting other Asian
currencies like the Aussie Dollar which fell another 100 pips last night,
AUD.USD fell to trade at .9480 and AUD.CAD fell to trade at .9730, when compared
to this commodity currency the Canadian Dollar is a superstar.
EURO.USD
traded a bit higher in a narrow overnight trading range reaching 1.3270, the
highest levels in weeks this was despite report by the German Central Bank (the
Bundesbank) downgrading their 2014 German growth forecast to 1.5% from 1.9%. For the most part at the moment the currency markets
are focused on the Yen and are giving the Euro a bit of a free pass, I still
look for the Euro to trade weaker as the months pass.
The
Canadian Dollar is dramatically stronger this morning after the biggest single
one day rally for the Loonie in over a year against the US Dollar. To emphasis
that this is a US dollar story and not a Canadian Dollar story the Loonie is
still at it weakest points in months against the Euro and Sterling, this leads
me to believe that this move can turn around very quickly if the US Dollar suddenly
rallies. I had a good laugh this morning listening to the news that attributed
the rise in the Canadian Dollar to the first comments made by new Bank of
Canada Governor Poloz yesterday, his comments were very conservative and just emphasized
the previous administration policy, they had no effect on the Loonie. The drop
in USD.CAD yesterday was solely on the back of the huge drop in USD.JPY.
Volatility
could again be the key word today as we get the release of the US and Canadian
Employment reports at 08:30. The world’s currency markets will be watching the
US number and any recovery today for the Greenback will hinge on a strong
number, we are expecting 165,000 new jobs to have been created so anything
north of 200k will help push USD.CAD back higher, a terrible number and USD.CAD
should hit 1.0200
Of
less impact on the world’s currency market will be the Canadian Employment
Report but it will still important to Canadian Dollar traders, we are expecting
18K new jobs to have been created last month but I heard this morning that the
temporary employment in the BC election may drive the number higher, What is probably
most certain is that the Bank Economists won’t even be close in their predictions.
A strong number should help USD.CAD drop
below 1.0200, either way it will be a volatile release so make sure you have
your orders in to take advantage of it.
Have
a great weekend
Mike
GFX Morning Currency Rates
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Friday June 07, 2013
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Currencies
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7:00am Today's Opening
|
Yesterday's Opening
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USD/CAD
|
1.0255
|
1.032
|
|||||
CAD/USD
|
0.9751
|
0.964
|
|||||
EUR/USD
|
1.3246
|
1.3112
|
|||||
EUR/CAD
|
1.3586
|
1.3535
|
|||||
STG/CAD
|
1.5979
|
1.595
|
|||||
AUD/CAD
|
0.974
|
0.9811
|
|||||
CAD/JPY
|
93.44
|
95.92
|
|||||
CAD/CHF
|
0.9032
|
0.912
|
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CAD/HKD
|
7.5492
|
7.499
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CAD/CNY
|
5.9777
|
5.9457
|
|||||
CAD/MXN
|
12.5462
|
12.4567
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Commodities
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|||||||
Gold
|
$1,411.00
|
$1,404.00
|
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OIL
|
$95.27
|
$94.23
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US DOLLAR INDEX
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|||||||
P.CLOSE
|
81.53
|
82.57
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OPEN
|
81.34
|
82.43
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