GFX Morning FX Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.1060-1.1140

Today's expected range for the Canadian Dollar against the Euro is 1.4930-1.5000

Today's expected range for the Canadian Dollar against Sterling is 1.8080-1.8150

The US Dollar is mixed this morning as it is higher against Sterling but lower against the Euro. In the UK the Pound which had been on a great run as of late slid for the 5th straight day on poor manufacturing data, while in Europe just the opposite happened. The Euro is higher as the Industrial Production report came in above economists’ predictions.

The Canadian Dollar is stronger this morning as it has been able to hold onto its gains from Friday where the rumours of a Keystone deal being finalized pushed the Loonie higher. In fact it was just an environmental report that came out in Canada's favour, the final Keystone decision by Obama is still months away.

I would greatly caution US Dollar buyers to be ready to take advantage of this move, we have not seen much of a recovery in the Loonie as of late and if we are correct and the trend is still for more Canadian Dollar weakness then this is a great buying opportunity, we would recommend buying a small portion of your exposure at these levels and then wait and see if the pullback has any more legs.

Up today we get some secondary data out of both Canada and the US, we would expect that the Loonie to trade in a tight range and we can see if this recovery has any more substance to it.

Have a great week

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1068			1.1194
CAD/USD		0.9035			0.8933
EUR/USD		1.3502			1.355
EUR/CAD		1.4951			1.5169
STG/CAD		1.8086			1.8427
AUD/CAD		0.974			0.9758
CAD/JPY		91.97			91.29
CAD/CHF		0.8166			0.8058
CAD/HKD		6.9901			6.9139
CAD/CNY		5.4723			5.4123
CAD/MXN		12.039			12.0262
Commodities
Gold		$1,244.00			$1,248.00
OIL		$97.49			$97.79
US DOLLAR INDEX
P.CLOSE		81.26			80.98
OPEN		81.19			81.05
US 10YR YIELD		2.66%			2.66%