GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0990-1.1050

Today’s expected range for the Canadian Dollar against the Euro is 1.5230-1.5290

Today’s expected range for the Canadian Dollar against Sterling  is 1.8500-1.8560

The US Dollar is weaker this morning against the Euro and Sterling as better than expected manufacturing and services sector reports have pushed the Euro higher against the Greenback. This report shows that the Euro-Zone economy might not be as bad as pundits have been arguing, if we get a string of these strong reports I think we can look to see the Euro continue to push higher.

In other currency news overnight the Australian Dollar gave up almost a 100 points to the US Dollar as their inflation rate came in lower than expected, it is once again apparent that world inflation rates are dramatically affecting the currency markets. I will continue to watch inflation reports to get a gauge of what the currency markets are going to do.

The Canadian Dollar continues to trade in very narrow overnight markets and is still looking for its next direction, the Loonie is a little weaker against the US as the reports yesterday’s of potential large M&A activity seemed to have weakened the Loonie off a little. I still look for an eventual short-term test of 1.1050 but so far any movement has been hard to come by.

Up today we get Canadian Retail Sales report for the month of February, we are expecting a jump of 0.4% which is a little better than the January report of 0.3%, I don’t think that the report will have much effect on the market but if it comes in a lot lower than expectation we may have the push that gives USD.CAD the push to go higher.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1033			1.1016
CAD/USD		0.9064			0.9079
EUR/USD		1.3836			1.3818
EUR/CAD		1.5268			1.5224
STG/CAD		1.8534			1.8538
AUD/CAD		1.0247			1.031
CAD/JPY		92.63			93.08
CAD/CHF		0.7988			0.8018
CAD/HKD		7.0216			7.0319
CAD/CNY		5.6529			5.6597
CAD/MXN		11.8423			11.8561
Commodities
Gold		$1,286.00			$1,292.00
OIL		$101.36			$104.10
US DOLLAR INDEX
P.CLOSE		79.9			80.03
OPEN		79.74			79.83
US 10YR YIELD		2.70%			2.71%