GFX Morning FX Commentary July 29th, 2013

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0245-1.0320

Today’s expected range for the Canadian Dollar against the Euro is 1.3620-1.3700

Today’s expected range for the Canadian Dollar against Sterling is 1.5770-1.5850

The US Dollar is for the most part unchanged from Friday’s close as the overnight currency markets were very quiet. USD.JPY is a bit lower this morning as the Governor of the Bank of Japan indicated that it will take some time for the Japanese economy to reach its 2% inflation goal, there was some optimism last week that inflation was returning to the Japanese economy but this statement seems to put a damper on this view.

The Canadian Dollar had a very quiet night and is right where we left it on Friday, nothing new to report on the Loonie, we will continue to trade around the 1.0300 level in very uninspiring trading. I expect volatility to pick up later in the week as we start to get Central Banks reporting on interest rates and we get the US employment report on Friday.

There is some M&A news to report that Hudson’s Bay is buying Sak’s in the US for a total price of 2.9B USD. We can never be sure of the FX implication of any M&A deal but if HBC has to buy some USD in the coming days we may see a temporary spike in USD.CAD at some point.

Have a great week

Mike

GFX Morning Currency Rates
Monday July 29th, 2013
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0269			1.0272
CAD/USD		0.9738			0.9735
EUR/USD		1.329			1.3225
EUR/CAD		1.3648			1.3639
STG/CAD		1.5802			15,410
AUD/CAD		0.9496			0.9522
CAD/JPY		95.15			95.9
CAD/CHF		0.9028			0.9035
CAD/HKD		7.5545			7.5514
CAD/CNY		5.9714
					5.968
Commodities
Gold		$1,326.78			$1,330.00
OIL		$104.40			$104.78
US DOLLAR INDEX
P.CLOSE		81.77			81.83
OPEN		81.63			81.76
US 10YR YIELD		2.56%			2.57%