GFX Morning Commentary

Good Morning,

 

Today’s suggested range for the Canadian dollar against the US dollar is 1.0865 – 1.0915

 

Today’s suggested range for the Canadian dollar against the Euro is 1.5050 – 1.5150

 

Today’s suggested range for the Canadian dollar against Sterling is 1.82 25 – 1.8325

 

The plight of the US dollar has worsened post Fed minutes falling overnight against the major currencies. The key headline from the Fed minutes was that “several members said recent forecasts overstated the pace of higher interest rates”. The Aussie dollar hits November high after stronger than expected job growth, while the Kiwi is at its strongest level since 2011.The Japanese Yen gained on bets U.S. policy makers will delay moving towards higher interest rates.

 Most of the European currencies advanced against the greenback overnight with the lone exception being the Swedish Krona which fell as a report showed consumer prices dropped twice as much as economists had predicted. The Bank of England left interest rates on hold at 0.5% and kept the QE steady as expected with the reaction in the British Pound muted.

 The Canadian dollar is still holding onto recent gains against the US dollar as general weakness in the greenback persists. The major benefit of a weaker US dollar is that commodities which are priced in USD is making them more affordable creating global demand. Both gold and oil are firmer from our close yesterday. The shift in USD sentiment has seen the U.S. 10 year Treasury yield slip to 2.65%. Today the only Canadian economic release is  new housing price index for February. In the U.S. today jobless claims data is the lone economic indicator due out.  The USD/CAD failed to break below our low set yesterday so for the time being a base is forming in the 1.0860 – 70 level, and having said that we may be due for some consolidation as major resistance in USD/CAD comes in at 1.0960.

 

Have a great day!

 

 

GFX Morning Currency Rates
Thursday April 10, 2014
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0885			1.0933
CAD/USD		0.9187			0.9147
EUR/USD		1.3868			1.38
EUR/CAD		1.5099			1.5091
STG/CAD		1.828			1.8305
AUD/CAD		1.0269			1.0241
CAD/JPY		93.28			93.32
CAD/CHF		0.8059			0.8075
CAD/HKD		7.1013			7.0695
CAD/CNY		5.6995			5.6673
CAD/MXN		11.9357			11.9373
Commodities
Gold		$1,321.00			$1,309.00
OIL		$103.40			$102.50
US DOLLAR INDEX
P.CLOSE		79.52			79.74
OPEN		79.44			79.8
US 10YR YIELD		2.65%			2.70%