GFX Morning FX Commentary July 30th, 2013

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0240-1.0310

Today’s expected range for the Canadian Dollar against the Euro is 1.3610-1.3680

Today’s expected range for the Canadian Dollar against Sterling is 1.5710-1.5780

The US Dollar is mixed this morning as it is marginally weaker against the Euro and stronger against the Pound. In the UK, Sterling is again lower as investors are betting that the Bank of England this week will favour increasing their stimulus program when they announce their interest rate policy, more so than the European Central bank will. This is a big week for Central Banks with the US Federal Reserve, the European Central Bank and the Bank of England all reporting their latest interest rate policies so we should see some fireworks in the currency markets later this week.

In other currency action over night the Reserve Bank of Australia Governor Stevens stated that the Central  Bank still has more room to lower interest rates as inflation is not a concern at the moment. AUD.USD was the big mover overnight as it dropped over 130 points to trade near .9050. USD.JPY also dropped quite a bit as Industrial Production in Japan fell the most it has in two years, so not all is good news coming out of Japan.

Nothing to report on the Canadian Dollar, the recent trading range has narrowed to trade between 1.0250 and 1.0300 and can’t seem to break either side, I think we will get some movement later this week with the Central Bank announcements and the US Employment report but for now the market will remain quiet.

Up today we do get some secondary data out of the US economy including Consumer Confidence for July but unless the numbers are dramatically different from expectation I don’t think they will move the market. Look for USD.CAD to continue to range trade today.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0273			1.0269
CAD/USD		0.9734			0.9738
EUR/USD		1.3269			1.329
EUR/CAD		1.3629			1.3648
STG/CAD		1.573			1.5802
AUD/CAD		0.9317			0.9496
CAD/JPY		95.39			95.15
CAD/CHF		0.9051			0.9028
CAD/HKD		7.5488			7.5545
CAD/CNY		5.9693			5.9714
Commodities
Gold		$1,322.42			$1,326.78
OIL		$103.81			$104.40
US DOLLAR INDEX
P.CLOSE		81.8			81.77
OPEN		81.85			81.63
US 10YR YIELD		2.59%			2.56%