GFX Morning Commentary

Good Morning,

Today’s suggested range for the Canadian dollar against the US Dollar is 1.0900 – 1.0960

Today’s suggested range for the Canadian dollar against the Euro is 1.4975 – 1.5075

Today’s suggested range for the Canadian dollar against Sterling is 1.8200 – 1.8300


The US Dollar is considerably weaker against the broader market as higher yielding currencies gain. The commodity based currencies enjoyed a strong session overnight including the South African Rand which has erased all loses to the greenback this year. Doubts seem to be lingering concerning the U.S. recovery as last week’s U.S. job report disappointed. The Japanese Yen gained  in the overseas market as the Bank of Japan sees no need for further easing.

In Europe the British Pound made strong gains against US Dollar the most in eight weeks as data showed industrial production exceeded expectations rising 2.7% y/y from estimates of 2.2%. The strong data in the U.K. will no doubt start speculation that policy makers will begin tightening early next year. The Euro also gained against the US Dollar but trailed the move in the Sterling.

The Canadian dollar gained from a weaker US Dollar but also got a boost from the Quebec elections showing a majority Liberal government which will hopefully put to rest the debate on separatism. The USD/CAD broke below the level set from the stronger than expected payroll data for Canada last Friday. The sentiment on the CAD dollar looks to be shifting  as there is  still has room to appreciate given it was one of the worst performing currencies this year. The start of the 2014 the USD/CAD was at 1.0600 and when I hear of other commodity based currencies like the South African Rand recovering all of its loses for the year there is still upside for the CAD. Both Oil and gold are firmer with Dow futures pointing lower by 18 points as corporate earnings are set to be released. Canadian housing starts and building permits are due out this morning with the U.S. economic calendar empty.
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Have a great day!

GFX Morning Currency Rates
Tuesday April 08, 2014
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0925			1.1
CAD/USD		0.9153			0.909
EUR/USD		1.3764			1.3725
EUR/CAD		1.5038			1.51
STG/CAD		1.8256			1.8246
AUD/CAD		1.0189			1.0199
CAD/JPY		93.85			93.82
CAD/CHF		0.8109			0.808
CAD/HKD		7.0757			7.0267
CAD/CNY		5.6704			5.6459
CAD/MXN		11.8804			11.8644
Commodities
Gold		$1,315.00			$1,301.00
OIL		$101.23			$100.67
US DOLLAR INDEX
P.CLOSE		80.22			80.43
OPEN		79.98			80.35
US 10YR YIELD		2.70%			2.72%