GFX Morning FX Commentary July 8th, 2013

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0525-1.0600

Today’s expected range for the Canadian Dollar against the Euro is 1.3550-1.3625

Today’s expected range for the Canadian Dollar against Sterling is 1.5720-1.5800

The US Dollar is marginally weaker this morning as the market reacts to the strong US employment report from Friday and more poor economic reports out of Germany. Equities in Europe surged on a poorer than expected Industrial Production and Investor Confidence reports, given what Carney and Draghi said last week, there is little or no chance of higher interest rates in the UK or Europe, so funny enough any negative news out of Europe will be positive for equities as it will be perceived that the Central Banks will be pushing more stimulus into the economy, kind of perverse logic but I guess it works.

Up this week (Wednesday)North American investors will get the release of the minutes from the Federal Reserve’s last policy meeting and they will be looking to see if there are any indications of  a move towards tapering the stimulus package, given the strong jobs report from Friday and other strong economic data it looks like they will start soon whether or note they talked about it in their last meeting remains to be seen.

The Canadian Dollar is a little stronger this morning as it is supported by the 1.0550 level at the moment. With the lack of economic information coming out of Canada this week trading will be once again influenced by external events including Fed Chairman’s Ben Bernanke’s speech on economic policy on Wednesday afternoon, if he mentions tapering in that speech then the currency markets should go crazy.

 

Have a great week

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.056			1.0543
CAD/USD		0.947			0.9484
EUR/USD		1.2852			1.2879
EUR/CAD		1.3576			1.3585
STG/CAD		1.5745			1.5793
AUD/CAD		0.9601			0.9663
CAD/JPY		95.73			94.77
CAD/CHF		0.9126			0.9091
CAD/HKD		7.5269			7.3321
CAD/CNY		5.8057			5.851
CAD/MXN		12.3545			12.3357
Commodities
Gold		$1,230.00			$1,232.00
OIL		$102.98			$101.45
US DOLLAR INDEX
P.CLOSE		84.2			84.7
OPEN		84.65			84.25
US 10YR YIELD		2.72%