GFX Afternoon Commentary

Good afternoon,

Below are the current daily levels vs. the other major currencies.

USD.CAD 1.0495 up 0.36%

GBP.CAD 1.6875 up 0.51%

EUR.CAD 1.4136 up 0.24%

The USD/ CAD had pushed higher this morning. For now, inflation indicators point to a very weak inflation in the Canadian economy, with New Housing Price index having not moved at all. This morning, Statistics Canada reported the Canadian trade deficit has contracted to its lowest levels in four months to 435 million which is much better than the expected amount of 1.2 billion.

The U.S dollar rose against the major traded currencies and had a stronger rise against commodity- exporting countries such as Canada and Australia. Future Federal Reserve chairperson, Janet Yellen, has indicated that she will continue using the stimulus until she sees an improvement in the economy, which is preforming below potential; the stimulus will try to lower the USD in an effort to increase foreign investment and risk.

There will be a GDP and inflation announcement in the E.U. at 10:00 am tomorrow which may result in increased volatility for the Euro, make sure you get your Euro orders in early. 

The overnight expected range for the Canadian dollar against the USD dollar 1.0445-1.0545

The overnight expected range for the Canadian dollar against the Euro is 1.4086-1.4186

The overnight expected range for the Canadian dollar against Sterling is 1.6825-1.6925

Have a great afternoon,

Bethlehem Belte| GFX Partners Inc I Currency Advisor