GFX Morning FX Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is  1.0425-1.0480

Today's expected range for the Canadian Dollar against the Euro is 1.4120-1.4200

Today's expected range for the Canadian Dollar against Sterling 1.6860-1.6950

The US Dollar is mixed this morning with little overnight activity. European and Asian equity market were all weaker so the Japanese Yen moved a bit higher, there were reports out of Japan that the Finance Minister said it will take much longer to reform the Japanese public sector pension plan than previously thought, it was expected that more money would flow in to foreign equities out of Japan to improve returns on the pension plan but that looks like it will take longer than expected.

The Aussie Dollar is weaker as government officials in that country were saying they need a weaker currency to improve exports, in the UK Sterling is a bit stronger after the Bank of England policy  meeting minutes showed that all members voted to keep rates and stimulus at current levels. Investors are believing that the momentum in the UK economy will lead the Bank of England to be one of the first Central Banks to raise interest rates.

Another uneventful night for the Canadian Dollar, as we are still stuck in a very narrow trading range, there is nothing on the horizon today that will bring any volatility to Loonie trading  but we may get a breakout Friday morning with the release of CPI and Retail Sales. Our view has not changed we still favour a move higher above 1.0500 but it will be a gradual move. US Dollar buyers should still be looking at anything below 1.0450 as good levels to buy.

We do get some secondary US data this morning but once again I am not expecting the Loonie to break out until at least Friday.
 

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0456			1.0442
CAD/USD		0.9563			0.9577
EUR/USD		1.3526			1.3496
EUR/CAD		1.4145			1.4096
STG/CAD		1.6878			1.6794
AUD/CAD		0.9825			0.9836
CAD/JPY		95.47			95.59
CAD/CHF		0.8709			0.8745
CAD/HKD		7.4079			7.4176
CAD/CNY		5.8252			5.8326
CAD/MXN		12.4259			12.3929
Commodities
Gold		$1,273.00			$1,275.00
OIL		$93.44			$92.86
US DOLLAR INDEX
P.CLOSE		80.71			80.79
OPEN		80.65			80.86
US 10YR YIELD		2.72%			2.67%