GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0560-1.0630

Today’s expected range for the Canadian Dollar against the Euro is 1.4500-1.4560

Today’s expected range for the Canadian Dollar against Sterling is 1.7310-1.7380

The US Dollar is weaker this morning as investors start to take their profit on the massive long US Dollar positions that the held before the Federal Reserve announcement on tapering of their stimulus program last week. The big movers overnight were USD.JPY that dropped to trade at 103.80, EURO.USD rose to trade at 1.3695 and Sterling rose to trade at 1.6365. I think we will continue to see enhanced volatility over the next few hours ahead of the Christmas holiday period, with most banks running skeleton staff for the holidays we can quite often see exaggerated movement during these periods.

Perhaps the biggest currency mover overnight was the Canadian Dollar as it rallied over 100 points from its high up near 1.0700 last week, investors who were exceedingly short Canadian Dollars have started to buy back those positions and as a result USD.CAD has dropped significantly. I still hold my view that the Canadian Dollar will weaken into the new year so this drop represents a great opportunity for US Dollar buyers to grab some US.

Up today we do get some secondary US data but we also get the Canadian GDP report for October, given the current holiday environment we may have quite a busy morning if the GDP report is significantly different from market expectation.

With the Holiday’s now upon us GFX will have holiday hours to match those of the banks, we will close tomorrow at noon and reopen on Friday the 27^th for a full day, the following week we will close at noon on the 31^st and then reopen on the 2^nd. I remind all readers that while we will be closed on the 26^th the US markets will be open so make sure that you leave your orders ahead of that and take advantage of any opportunities that arise.

Have a great week.

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0600			1.0667
CAD/USD		0.9433			0.9374
EUR/USD		1.3684			1.3657
EUR/CAD		1.451			1.3652
STG/CAD		1.7339			1.7427
AUD/CAD		0.9477			0.9457
CAD/JPY		97.94			97.86
CAD/CHF		0.8444			0.8417
CAD/HKD		7.2929			7.2631
CAD/CNY		7.2929			7.2631
CAD/MXN		12.2075			12.0954
Commodities
Gold		$1,195.20			$1,195.00
OIL		$98.95			$98.86
US DOLLAR INDEX
P.CLOSE					80.62
OPEN		80.6			80.65
US 10YR YIELD		2.75%			2.95%