GFX Morning FX Commentary Sept 03, 2013

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0490-1.0570

Today's expected range for the Canadian Dollar against the Euro is 1.3850-1.3930

Today's expected range for the Canadian Dollar against Sterling is 1.6360-1.6440

The US Dollar is mixed to start the new trading month as currency markets gear back up after the North American Labour Day holiday. Overnight the US Dollar had a brief surge as a Russian news agency reported that two ballistic missiles were fired from the Mediterranean headed for the Eastern Mediterranean, later in the morning Israel announced that they test fired two missiles in conjunction with the US. This just highlights how nervous investors are about the Geo-political situation in the Middle East at the moment.

Sterling continues to move higher, yesterday the UK economy reported better than expected construction data so the recent upturn in the UK economy continues.

Overnight the Reserve Bank of Australia kept its interest rate at current levels but took out it negative tone from its last statement, the Aussie Dollar which had been trading very weak jumped over 1.5% on the report which is the best gain it has had in months. Later this week we get the European Central Bank and Bank of England reporting on interest rates.

The Canadian Dollar continues to remain weak, yesterday it traded in a very narrow range near the 1.0550 level and most likely will remain in a narrow range for the rest of the day. It should be an active week for the Loonie as we have the Bank of Canada interest rate announcement tomorrow and on Friday we have the Canadian Jobs report due out. It looks like September could be a very volatile month in the currency markets with the situation in Syria, lots of interest rate news, very volatile equity markets and the German Election set for September 22^nd all influencing financial markets. Given that markets do not like uncertainty I would expect that the US Dollar could benefit from all that is happening but we shall see as the month unfolds.

Have a great week

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0531			1.053
CAD/USD		0.9496			0.9497
EUR/USD		1.3175			1.3237
EUR/CAD		1.3872			1.3941
STG/CAD		1.6405			1.631
AUD/CAD		0.9512			0.94
CAD/JPY		94.42			93.23
CAD/CHF		0.888			0.8831
CAD/HKD		7.3571			7.3598
CAD/CNY		5.8096			5.8122
CAD/MXN		12.755
Commodities
Gold		$1,393.00			$1,395.00
OIL		$107.24			$107.77
US DOLLAR INDEX
P.CLOSE		82.3			82.01
OPEN		82.41			82.03
US 10YR YIELD		2.75%			2.75%