GFX Morning Commentary August 7th, 2013

Good Morning.

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0400-1.0475

Today expected range for the Canadian Dollar against the Euro is 1.3840-1.3920

Today’s expected range for the Canadian Dollar against Sterling is 1.6080-1.6150

The US Dollar is weaker this morning against the EURO and Sterling as positive developments out of the UK and Germany have pushed those currencies higher overnight. In the UK, Bank of England Governor Carney made the statement that interest rates in the UK will stay at current levels until the unemployment rate reaches the 7.0% level and even then they may not increase as it will not be  a hard and fast rule, the BOE will look at the economy when rates get to 7.0% before deciding to raise interest rates. GBP.USD jumped to trade above 1.5450 overnight on this statement as UK stocks gave up some strength.

In Germany Industrial Production rose 2.4% from the May number so once again we are seeing positive economic numbers out of Germany which of course leads the EU-Zone. EURO.USD did not move as much as Sterling but did trade up to 1.3310 on the news, it has given back some of those gains as it settles into range trading.

The Canadian Dollar is weaker this morning against the US Dollar has USD.CAD moved higher during the night, I am not quite sure what pushed it as the US Dollar is weaker against the Euro and Sterling but it looks like the Greenback is stronger against all the commodity currencies with the Loonie being weakest of the bunch. I mentioned yesterday that we were looking for this break higher but I think now USD.CAD will settle down and range trade again.

With only minor economic releases I think you will see a quiet day for USD.CAD with this move running out of steam as we get near the high of our daily ranges, if we do break above 1.0450 today then something short-term is driving the market and US Dollar sellers need to take advantage of the move, make sure you get your orders in, if we have a quick spike then I don’t think it will remain there for long.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0415			1.037
CAD/USD					0.9644
EUR/USD		1.3306			1.3271
EUR/CAD		1.3859			1.3775
STG/CAD		1.6077			1.5942
AUD/CAD		0.9312			0.931
CAD/JPY		93.29			94.52
CAD/CHF		0.8877			0.8931
CAD/HKD		7.4185			7.4512
CAD/CNY		6.1195			5.8941
CAD/MXN		12.1109			12.2084
Commodities
Gold		$1,278.70			$1,292.60
OIL		$105.88			$106.87
US DOLLAR INDEX
P.CLOSE					82
OPEN		81.59			81.85
US 10YR YIELD		2.63%			2.64%