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 1.3565-1.3640
Today’s
expected range for the Canadian Dollar against Sterling 1.5660-1.5730
The US Dollar is mostly unchanged to start the day, the lone exception being against Sterling. In the UK this morning the Industrial Production report came in much worse than expected driving GBP.USD down over 150 points to trade at 1.4840, clearly Carney has his work cut out for him as the UK economy is sputtering along. The last time Sterling was this week was March of this year, it quickly recovered from those levels and traded above 1.5600 for some time, if Sterling does not recover in the short-term then more bad data could push GBP.USD to trade below the 1.4500 level in the coming weeks. GBP.CAD is also a bit lower but because the Canadian Dollar is still relatively weak against the USD we are not getting as much movement in GBP.CAD as we are in GBP.USD.
The
Euro jumped for a little while overnight as the EU Finance Ministers announced
they would release another $2.5B of the aid package to Greece, that in itself was
not enough to push the Euro all that much higher. Now if they had refused
Greece more money that would have made currency trading very interesting today.
The Canadian Dollar is still stuck in tight overnight ranges (and tight intra-day North American ranges for that matter) as it awaits its next push, there is very little on the horizon to give it much impetus so it may stay in these ranges for some while yet.
We
have not had a Mike Smith morning Rant
for some time so here goes: Yesterday
saw CIBC come out and say that by the end of 2014 the Canadian Dollar will be
back at parity to the US Dollar, a statement that was picked up by the media
and spread across the news wires. In my mind there is absolutely no point in projecting
where the Canadian Dollar will be in 18 months, it is much too difficult and
prone to so many factors changing that one cannot accurately predict any
currency that far out. If you want to impress me tell me where the currency
will be next week not in 18 months or how about getting your expectations for
an economic release correct for once, that would be very helpful. I guess CIBC was
just looking for some easy press coverage, in 18 months no one will remember what
was said yesterday, they will just ignore it if they were wrong. I am not sure
if Jeff Rubin (he was the chief economist) was still at CIBC when he made the prediction
that the price of oil was going to hit $200 a barrel, how did that one work out?
I wish economists in general would just stop making outlandish predictions which
in no way can be supported.
With
just Canadian Housing starts due out today I am not expecting much of a range
but I can see USD.CAD breaking to the lower end of our expected range to start
the day.
Have
a great day.
Mike
GFX
Morning Currency Rates
|
|||||||
| Currencies | 7:00am Today's Opening | Yesterday's Opening | |||||
| USD/CAD | 1.0558 | 1.056 | |||||
| CAD/USD | 0.9471 | 0.947 | |||||
| EUR/USD | 1.2862 | 1.2852 | |||||
| EUR/CAD | 1.358 | 1.3576 | |||||
| STG/CAD | 1.5667 | 1.5745 | |||||
| AUD/CAD | 0.9655 | 0.9601 | |||||
| CAD/JPY | 95.88 | 95.73 | |||||
| CAD/CHF | 0.9168 | 0.9126 | |||||
| CAD/HKD | 7.3249 | 7.5269 | |||||
| CAD/CNY | 5.8047 | 5.8057 | |||||
| CAD/MXN | 12.1953 | 12.3545 | |||||
| Commodities | |||||||
| Gold | $1,248.00 | $1,230.00 | |||||
| OIL | $103.00 | $102.98 | |||||
| US DOLLAR INDEX | |||||||
| P.CLOSE | 84.43 | 84.2 | |||||
| OPEN | 84.59 | 84.65 | |||||
| US 10YR YIELD | 2.65% | 2.72% | |||||
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