GFX Morning Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0420-1.0490

Today's expected range for the Canadian Dollar against the Euro is 1.4070-1.4150

Today's expected range for the Canadian Dollar against Sterling is 1.6770-1.6850

The US Dollar for the most part is unchanged in quiet overnight markets. The only currency move of note was the Australian Dollar which jumped to a high of .9440 against the Greenback, the minutes from the last Reserve Bank of Australia meeting showed there would not be any change to their interest rate policy for a while, the Aussie also got a bit of a lift on the Chinese announcement that they would be widening the band to allow the Yuan to float more freely, this was part of the economic reform package that they announced yesterday.

The Euro is marginally stronger as the German ZEW confidence report came in better than expected, Sterling is also a little bit higher but really is just range trading at the moment.

USD.CAD seems to be entrenched in this 1.0420-1.0480 trading range at the moment, with little on the horizon to give it any direction. The only meaningful Canadian Data is the CPI and Retail Sales report due out on Friday, so I think we will stay range bound for a while yet. Overall I still think the risk is to break above 1.0500 but it may take a while to get there.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0442			1.0421
CAD/USD		0.9577			0.9546
EUR/USD		1.3496			1.3507
EUR/CAD		1.4096			1.4077
STG/CAD		1.6794			1.6774
AUD/CAD		0.9836			0.9796
CAD/JPY		95.59			96.08
CAD/CHF		0.8745			0.8758
CAD/HKD		7.4176			7.4342
CAD/CNY		5.8326			5.8431
CAD/MXN		12.3929			12.9075
Commodities
Gold		$1,275.00			$1,283.00
OIL		$92.86			$93.41
US DOLLAR INDEX
P.CLOSE		80.79			80.87
OPEN		80.86			80.79
US 10YR YIELD		2.67%			2.70%