Today’s
expected range for the Canadian Dollar against the US Dollar is 1.0330-1.0410
Today’s
expected range for the Canadian Dollar against the Euro is 1.4020-1.4100
Today’s expected range for the Canadian Dollar against Sterling is 1.6600-1.6680
The
US Dollar is marginally weaker this morning as the US Debt drama continues to
play out on the world’s stage. The US is expected to reach their debt ceiling
at some point tomorrow, at this point the Government will not be in default,
they will only be able to operate with the cash they have on hand. Most news
outlets are reporting that the treasury will have enough money to reach near the
end of the month before they will have to default on some treasury bills, that
being said we have already started to see some negative news. Fitch credit rating
company has put US Sovereign debt on credit watch (other agencies will be soon
to follow) and the interest rates have spiked on $120 Billion of treasury bills
that are due to be redeemed tomorrow, this is a clear indication that holders
of these bonds are getting nervous about being paid. It is expected that the
Senate will announce a deal this morning at which point it will be up to
Republican Senators to convince some of their colleagues to pass the
legislation so there is some home out there that a deal will be completed.
Overall
the currency markets are still fairly orderly and quiet as we approach this latest
cliff, EURO.USD is higher but only had a 35 point overnight trading range,
GBP.USD is also higher and had a 40 point trading range. I get a sense that the
currency markets still think deal will
be reached and that American politicians are not that stupid as to stop funding
the government, I guess international
investors are not that familiar with the Tea Party Republicans from the South,
they are stupid enough. Sterling was also buoyed by a strong Employment report
which showed that jobless claims fell the most in 16 years.
The
Canadian Dollar continues to trade in narrow overnight ranges and is at its
weakest point in a couple of weeks and most likely won’t move until we get
resolution to the current Washington crisis. Up today we were to have the US
CPI released but that has been shelved due to the closure of the Government, USD.CAD
should stay within a tight range unless we get significant developments south
of the border. I still believe that if we move towards a US failure USD.CAD will
move much higher and if we get a resolution then USD.CAD will slowly fall back,
if you are a US Dollar buyer then you need to weigh the risks to your business accordingly,
my view would be to purchase part of your US Dollars at current rates on a forward
basis out at least 3 months to limit your exposure and then wait and see what
develops.
Have
a great day
Mike
GFX
Morning Currency Rates
|
|||||||
| Currencies | 7:00am Today's Opening | Yesterday's Opening | |||||
| USD/CAD | 1.0365 | 1.0356 | |||||
| CAD/USD | 0.9652 | ||||||
| EUR/USD | 1.3545 | 1.3484 | |||||
| EUR/CAD | 1.4039 | 1.3967 | |||||
| STG/CAD | 1.6608 | 1.6491 | |||||
| AUD/CAD | 0.988 | 0.9863 | |||||
| CAD/JPY | 94.84 | 95.17 | |||||
| CAD/CHF | 0.8793 | 0.8848 | |||||
| CAD/HKD | 7.4804 | 7.48 | |||||
| CAD/CNY | 5.8867 | 5.8917 | |||||
| CAD/MXN | 12.4687 | 12.5497 | |||||
| Commodities | |||||||
| Gold | $1,283.05 | $1,254.00 | |||||
| OIL | $101.25 | $101.84 | |||||
| US DOLLAR INDEX | |||||||
| P.CLOSE | 80.38 | ||||||
| OPEN | 80.44 | 80.75 | |||||
| US 10YR YIELD | 2.72% | 2.72% | |||||
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