GFX Morning FX Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.1020-1.1100

Today's expected range for the Canadian Dollar against the Euro is 1.5320-1.5400

Today's expected range for the Canadian Dollar against Sterling is 1.8330-11.8400

The US Dollar is stronger this morning against most of the major currencies but weaker against the commodity currencies as investors appear to be ignoring the vote in Crimea. After a 97% approval rate to join Russia European stock markets are all higher and the Euro fell to trade at 1.3885 against the Greenback. It appears that there is little the Western powers can do to prevent the annexation of the region by Russia so markets are now looking back at financial fundamentals to trade the market. If Putin makes further inroads to Eastern Ukraine then I think you will see markets get much more nervous

In Asia the Chinese Yuan fell to its weakest level in almost a year against the US Dollar as investor concerns about a slowdown in the Chinese economy continue to grow.

The Canadian Dollar and other commodity currencies are stronger this morning against the US Dollar and in the case of the Loonie it was one of the better performing currencies last night with the Loonie up almost 0.5%. I have to have a say that this move is a bit surprising to me as normally when the US Dollar is strong and the Chinese Yuan weakens the Loonie will weaken off as well but this is not the case today. It will be interesting to see if the Loonie can hold onto the strength throughout the day.

We have a busy week on the economic news front highlighted by the US CPI report tomorrow, Fed Chairperson Yellen first Fed interest rate announcement on Wednesday and Canada CPI and Retail sales report on Friday.

Up today we get a slew of secondary economic data out of the US so we could have a very busy day, given that the Loonie has strengthened when all other currencies have weakened against the US Dollar I find it difficult to imagine much more strength for the Loonie today but we shall see if the trend continues.

Have a great week

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1055			1.1075
CAD/USD		0.9045			0.9029
EUR/USD		1.3836			1.3889
EUR/CAD		1.5386			1.5383
STG/CAD		1.8585			1.8402
AUD/CAD		1.0029			1.0014
CAD/JPY		92.02			91.67
CAD/CHF		0.7908			0.7891
CAD/HKD		7.0024			6.9897
CAD/CNY		5.5854			5.5526
CAD/MXN		11.9514			11.9696
Commodities
Gold		$1,380.00			$1,370.30
OIL		$98.65			$98.28
US DOLLAR INDEX
P.CLOSE		79.72			79.72
OPEN		79.5			79.65
US 10YR YIELD		2.67%			2.69%