GFX Morning Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.1100-1.1170

Today’s expected range for the Canadian Dollar against the Euro is 1.5430-1.5500

Today’s expected range for the Canadian Dollar against Sterling is 1.8450-1.8520

The US Dollar is marginally stronger this morning in quiet overnight markets as growth concerns in China and continuing worries about the situation in Ukraine continue to force investors to the sidelines and buy US Dollars for safe keeping. Overnight equity markets are all lower as money flows into US treasury bonds, EURO.USD is slightly higher after trading lower for most of the morning and this is in spite of a poor Industrial Production number. Sterling is a bit weaker this morning as the Bank of England is becoming embroiled in a currency rate fixing scandal that has been ongoing for some time now, I don’t think it will  have a long-term effect on the Pound and if the UK economy is still strong the then Pound will rebound.

The Canadian Dollar continues to weaken off as the stronger US Dollar is pushing USD.CAD up towards 1.1150, we had a very quick move higher this morning which surprised me, the move appears to be driven by weakness in the Loonie against both the Euro and Sterling. There was an interesting report yesterday from TD Asset management that stated they as a group they were starting to put on some hedges for their US Portfolio to protect themselves against a stronger Canadian Dollar, that is the first report in a long-time that indicates this bout of weakness in the Canadian Dollar may be coming to an end. Short-term I still see USD.CAD testing higher but perhaps the doom and gloom of predictions of the rate going to 1.1500 and higher this year may be coming to an end.

Nothing on the economic front today, I look for continued Canadian Dollar weakness but a tight trading range for USD.CAD.

Have a great day and if you are on working or living in Ontario and East stay warm as we get a last gasp of winter weather.

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1117			1.1119
CAD/USD					0.8993
EUR/USD		1.3862			1.3842
EUR/CAD		1.545			1.5394
STG/CAD		1.844			1.8474
AUD/CAD		0.9939			100.41
CAD/JPY		92.35			92.84
CAD/CHF		0.7884			0.7911
CAD/HKD		6.9628			6.9594
CAD/CNY		5.5261
CAD/MXN		11.9615			11.8945
Commodities
Gold		$1,356.00			$1,348.50
OIL		$98.76			$101.45
US DOLLAR INDEX
P.CLOSE		79.88			79.92
OPEN		79.88			80.02
US 10YR YIELD		2.74%			2.78%