GFX Mornign FX Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0800-1.0860

Today's expected range for the Canadian Dollar against the Euro is 1.4720-1.4780

Today's expected range for the Canadian Dollar against Sterling is 1.8100-18160

The US Dollar is marginally weaker this morning  as the currency market have all but ignored the poor US GDP report from yesterday and traded in a very tight overnight range, in over 30 years of FX experience I cannot remember when volatility was as low as it is now, EURO.USD trading in a 15 point range is almost unheard of yet that is what we saw last night.  The currency markets seem to be ignoring the 1st quarter US GDP which came in at -1.0%, this  was much higher than the expected -0.5% decline. Despite last night, overall the Greenback continues to gain against the Euro as the common currency continues to drop on the expectation that the ECB will start to aggressively add stimulus next week.

The Canadian Dollar continues to slowly strengthen against the US Dollar and also continues to make new ground against the Euro and Sterling. Loonie trading will be dominated today by the Canadian GDP report for March, we are expecting a growth rate of 0.1% (last 0.2%) with a year over year rate of 1.5%, when you consider that the US economy is contracting any positive number is good but even at 1.5% growth when you take into account inflation it shows that the Canadian economy is not really doing anything.

A strong number should push USD.CAD near the 1.0800 level and a weak number may start us on the road back to 1.0900, get your orders in before 08:30.

Have a great weekend

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0827			1.0857
CAD/USD		0.9236			0.921
EUR/USD		1.3608			1.3618
EUR/CAD		1.4735			1.4788
STG/CAD		1.8118			1.8158
AUD/CAD		1.0077			1.0098
CAD/JPY		93.87			93.48
CAD/CHF		0.8279			0.8254
CAD/HKD		7.1398			7.1191
CAD/CNY		5.7683			5.7455
CAD/MXN		11.8927			11.8672
Commodities
Gold		$1,253.00			$1,253.00
OIL		$103.24			$102.88
US DOLLAR INDEX
P.CLOSE		80.48			80.56
OPEN		80.45			80.42
US 10YR YIELD		2.47%			2.42%