Good afternoon,
Below are the current daily levels of the Canadian
dollar vs. the other major currencies.
USD.CAD 1.0322 down 0.15%
GBP.CAD 1.6698 down 0.43%
EUR.CAD 1.4064 up 0.20%
Weaker than expected growth, in the US service industry
has sent equity markets in the US tumbling, with the Dow Jones sinking to its lowest level in almost a month.
On the back of this news, the euro has, as expected, continued to strengthen
against the dollar. Seeing as there is still no end in sight to the shutdown,
this looks like a trend that may continue for some time yet.
The British pound has fallen against the euro in
early trading today, following on from yesterday’s announcement from the Bank
of England, that they wouldn’t be raising interest rates until it could be
certain that a recovery was assured. At present, rates in Britain are sitting
at a record low of 0.5 and will remain that way until unemployment hits the
target figure of 7%.
The Canadian dollar had a very quiet morning against the
US Dollar and continues to weaken against a strong Euro and Pound, our dollar appears
to be suffering from our neighbor’s on-going political woes. As the shutdown
continues and the debt ceiling day approaches, economists and investors are
speculating that Canada’s growth rates will suffer and unemployment may rise.
The major news to look out for this evening will be the
outcome of the Bank of Japan’s policy meeting. Having announced plans, earlier
this week, to stimulate the economy to the tune of $51bn, it will be
interesting to see if any further stimulus packages will be announced.
The overnight expected range for the Canadian dollar
against the US dollar is 1.028-1.037
The overnight expected range for the Canadian dollar
against the euro is 1.401-1.411
The overnight expected range for the Canadian dollar
against the pound is 1.662-1.675
Enjoy your afternoon,
Gavin
Gavin McAvoy | GFX Partners Inc
|Currency Advisor
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