GFX Morning FX Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.1100-1.1175

Today's expected range for the Canadian Dollar against the Euro is 1.5170-1.5250

Today's expected range for the Canadian Dollar against Sterling is 1.8480-1.8550

The US Dollar is stronger this morning as fears of Ukrainian unrest is starting to affect the currency markets, we have already started to see investors move out of European equity markets and into the safe have of US Treasury products. EURO.USD is much weaker on the Ukrainian situation and this is in spite of a business confidence survey that showed the Euro-Zone economy performing higher.

The Canadian Dollar lost some ground yesterday afternoon against the US Dollar and it has so far not been able to recover any of that weakness overnight or this morning. The Loonie did make some small gains against the Euro and Sterling but that was more because of the weakness in those currencies not nay strength in the Loonie.

Up today we get the US Durable Good orders report for January and if it comes in below expectation then we could see USD.CAD jump again, we also get Janet Yellen speaking today so the market will be looking for any comments that she makes on the tapering program. We still favour USD.CAD to head back up to 1.1200 so short-term buyers need to protect themselves.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1124			1.1077
CAD/USD		0.899			0.9028
EUR/USD		1.3659			1.3739
EUR/CAD		1.5194			1.522
STG/CAD		1.8508			1.8484
AUD/CAD		0.9942			0.9963
CAD/JPY		91.53			92.38
CAD/CHF		0.8013			0.8013
CAD/HKD		6.9541			6.9856
CAD/CNY		5.5051			5.5295
CAD/MXN		11.9978
Commodities
Gold		$1,332.00			$1,339.00
OIL		$102.40			$102.14
US DOLLAR INDEX
P.CLOSE		80.41			80.09
OPEN		80.48			80.18
US 10YR YIELD		2.64%			2.66%