GFX Morning FX Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0980-1.1050

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 1.8160-1.8240

The US Dollar is marginally weaker again this morning as it was led lower by a stronger GBP. In the UK the Bank of England's inflation report showed that inflation is under control and the recovery is picking up steam, overnight the pound advanced the most it has against the ‎ Euro in over two weeks.

Overall the US Dollar is weaker on the expectation that the US Retail sales report tomorrow will show the US recovery is stalling. Yesterday saw Fed Chairperson Yellen‎ indicate that she stands committed to the Fed's plan to continue to taper stimulus at the 10 Billion a month program but it will also depend on the economic data going forward.

The Canadian Dollar was able to make some small gains overnight and now USD.CAD looks like it wants to test lower. The new Federal Budget as expected did not have a dramatic effect on the Loonie but overall it is a positive budget for international investors looking to Canada as a stable country to invest in. With the country in a surplus position we will be in a much better position than most other countries.

Given that we are now a full 200 points off the January high for USD.CAD and the risks of a move higher are still quite strong then US Dollar buyers should be looking at covering some of their requirements at these levels. Short-term US dollar sellers who have orders above 1.1100 should now consider lowering them towards 1.1050

With no economic news out today we should have a relatively stable trading range, if the inter-bank rate does not break below the 1.1000 level today we may see USD.CAD start to move back towards 1.1050.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0996			1.1054
CAD/USD		0.9094			0.9046
EUR/USD		1.3582			1.3662
EUR/CAD		1.4937			1.5104
STG/CAD		1.8178			1.8164
AUD/CAD		0.9941			0.9975
CAD/JPY		92.95			92.56
CAD/CHF		0.8189			0.8104
CAD/HKD		7.0309			6.9951
CAD/CNY		5.5135			5.48
CAD/MXN		12.1072			12.0277
Commodities
Gold		$1,287.00			$1,285.00
OIL		$100.41			$100.35
US DOLLAR INDEX
P.CLOSE		80.63			80.63
OPEN		80.74			80.55
US 10YR YIELD		2.74%			2.68%