GFX Morning FX Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0970-1.1050

Today's expected range for the Canadian Dollar against the Euro is 1.4860-1.4940

Today's expected range for the Canadian Dollar against Sterling is 1.8050-1.8120

The US Dollar continued its dramatic rise against the world's currencies last night and it made its biggest move against the Japanese Yen, the dollar got a boost from a Wall Street Journal article that stated the US Federal reserve will taper by another $10B next week. In Japan the Bank of Japan will consider adding even more stimulus to the economy to try and counteract the negative effect that an imminent sales tax hike will have on the economy. In Europe the Euro was lower against the US Dollar as Germany’s ZEW survey of business confidence fell unexpectedly for the first time in 6 months.

The Canadian Dollar was weaker again last night as USD.CAD looks set to push above the 1.1000 level, levels that we have not seen since 2009. It does not look like US Dollar buyers are going to get any reprieve to buy some cheaper US before the Bank of Canada announcement tomorrow morning, we still think that given the rhetoric from Canadian politicians that the Bank will hint at rate cuts down the road. It certainly seems very plausible that 1.1100 is very attainable in the short-term now.

The Loonie is not just weak against the US Dollar but it is weak pretty much against every other currency in the world. EURO.CAD looks like it is going to hit 1.5000 at some point soon and GBP.CAD has easily broken through the 1.8000 barrier, and does not look like it will slow down any time soon.

Up today we do get some secondary trade data out of Canada but for the most part we USD.CAD should continue to trade around the 1.1000 level as the Canadian market sets up for the Bank of Canada announcement tomorrow.

 

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1014			1.0954
CAD/USD		0.9079			0.9129
EUR/USD		1.352			1.3555
EUR/CAD		1.4892			1.4851
STG/CAD		1.807			1.8005
AUD/CAD		0.9667			0.9652
CAD/JPY		94.98			95.02
CAD/CHF		0.8304			0.8303
CAD/HKD		7.0204			7.0595
CAD/CNY		5.4907			5.5226
CAD/MXN		12.1133			12.0909
Commodities
Gold		$1,245.00			$1,254.00
OIL		$94.59			$93.67
US DOLLAR INDEX
P.CLOSE		81.35			81.35
OPEN		81.33			81.1
US 10YR YIELD		2.85%			2.82%