GFX Morning FX Commentary, October 25th, 2013

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0400-1.0470

Today's expected range for the Canadian Dollar against the Euro is 1.4350-1.4420

Today's expected range for the Canadian Dollar against Sterling is 1.6850-1.6920

The US Dollar is marginally stronger to start the North American session, it was weaker most of the night as strong growth numbers out of the UK and further expectation that the Fed will not taper its stimulus program until March of next year continue to weigh on the Greenback. In the UK the growth rate accelerated the most it has in the last three years so once again the news coming out of the UK is quite positive. Overall the US Dollar has lost over 1.1% in value on the US Dollar index in the past few weeks, the weak trend for the Greenback seems to want to continue over the next few weeks or least until we get some clear direction from the US Federal Reserve.

The Canadian Dollar continues to weaken off both against the US Dollar but at a much quicker pace against the Euro and Sterling, EURO.CAD looks like it wants to get above 1.4400 and GBP.CAD is trading near 1.6900 both recent highs for these currency pairs. Against the Greenback USD.CAD has moved higher by about 200 pips since last week so I would expect some kind of a reprieve for the Loonie over the next day or two, markets rarely move in a straight line so I would expect that USD.CAD will stabilize with a possible pull-back towards 1.0400 where I think we will set up for the next move higher.

We do have some secondary US Data due out today but for the most part I think we will see the Loonie close a little stronger than it has in the past few sessions.

Have a great weekend

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0437			1.0398
CAD/USD		0.9581			0.9617
EUR/USD		1.3806			1.3793
EUR/CAD		1.441			1.4344
STG/CAD		1.6903			1.6821
AUD/CAD		1.0014			1.0005
CAD/JPY		93.13			93.59
CAD/CHF		0.8558			0.8568
CAD/HKD		7.4232			7.4506
CAD/CNY		5.8255			5.8477
CAD/MXN		12.4393			12.5407
Commodities
Gold		$1,340.00			$1,338.00
OIL		$97.59			$97.17
US DOLLAR INDEX
P.CLOSE		79.25			79.34
OPEN		79.24			79.26
US 10YR YIELD		2.51%			2.50%