GFX Morning FX 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 1.5340-1.5400

Today's expected range for the Canadian Dollar against Sterling  is 1.8410-1.8480  

 

The US Dollar is‎ mixed this morning as it is stronger against the Euro but weaker against the Pound. In Europe yesterday ECB Governor Draghi stated that the Central Bank stands ready to add monetary stimulus (interest rate cuts) at their next meeting if needed. We are seeing a real divergence in economies at the moment, in Europe they are talking about cutting interest rates and in the US and UK the talk is of when interest rates will rise. Clearly a scenario where the Euro should trade weaker over the medium-term.

The other big currency mover overnight was the Australian Dollar where the Governor of the Reserve Bank stated that he sees the economy improving over the course of the year as domestic consumption is on the rise, AUD.USD jumped to trade at a 4-month high after the comments.

The Canadian Dollar is stronger this morning as it was able to hold onto the strength that it picked up yesterday afternoon, I think these levels represent good short-term value for US dollar buyers as we have seen just how fast the Loonie can move when it starts to weaken, make sure you have your orders in place to take advantage of this move. US Dollar sellers can leave their orders between 1.1150 and 1.1175 and if the recent trend holds you should see those levels again.

Up today we get the release of the US Durable Goods report for February which can create some added volatility in the market. I would be very surprised if USD.CAD was to be able to break below 1.1100 today but a weak report may just give it the impetus to do that, a strong number will help push USD.CAD higher.

Have a great day and if you are reading this in Atlantic Canada stay safe, it looks like you are in for a wild winter storm.

Mike

 

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1139			1.1203
CAD/USD		0.8977			0.8926
EUR/USD		1.3798			1.3815
EUR/CAD		1.5372			1.5485
STG/CAD		1.842			1.8492
AUD/CAD		1.0283			1.0249
CAD/JPY		91.85			91.22
CAD/CHF		0.7951			0.7874
CAD/HKD		0.7451			6.9412
CAD/CNY		6.9439			5.5246
CAD/MXN		5.5758			11.7587
Commodities
Gold		$1,315.00			$1,315.00
OIL		$99.31			$99.98
US DOLLAR INDEX
P.CLOSE		79.93			79.98
OPEN		80.07			80.02
US 10YR YIELD		2.74%			2.72%