GFX Morning Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.1080-1.1140

Today’s expected range for the  Canadian Dollar against the Euro is 1.5360-1.5440

Today’s expected range for the Canadian Dollar against Sterling is 1.8430-1.8500

The US Dollar is marginally stronger this morning in very quiet overnight trading. EURO.USD was a little lower as ECB Vice President Vitor Constancio said in a speech that the market has not fully understood Governor Draghi’s comments on the economy when they reported on interest rates last week. I have said this many times that markets do not like uncertainty and comments like this will only serve to hurt a currency. The Japanese Yen is unchanged as the Central bank of Japan did not make any changes to its monetary policy, and in the UK the Pound is lower on comments made by BOE officials about possible interest rate hikes.

The Canadian Dollar continues to weaken ever so slightly in quiet markets, trading at the moment is very uninspiring and with the lack of economic activity until later in the week, today may be another quiet day. I read an interesting article that overall volatility in the currency markets has reached a low last seen in December of 2012, I would guess that Canadian Dollar volatility is probably lower than other currencies.

The Canadian Government has today announced a free trade deal with Korea, I am not sure what the benefit will be for Ontario but certainly the Food Industry across Canada will be a big winner, if anyone needs a Korean Won price down the road just ask, we cover that currency. The Loonie has not received any short-term benefit from the announcement, it is being ignored by the currency market.

Up today we get the US Wholesale trade report but unless we get a very big surprise we should have another quiet day.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1119			1.1108
CAD/USD		0.8993
EUR/USD		1.3842			1.3874
EUR/CAD		1.5394			1.5411
STG/CAD		1.8474			1.8500
AUD/CAD		100.41			1.0043
CAD/JPY		92.84			92.97
CAD/CHF		0.7911			0.7904
CAD/HKD		6.9594			6.9661
CAD/CNY					5.5261
CAD/MXN		11.8945			11.8713
Commodities
Gold		$1,348.50			$1,334.80
OIL		$101.45			$101.30
US DOLLAR INDEX
P.CLOSE		79.92
OPEN		80.02			79.92
US 10YR YIELD		2.78%			2.79%