GFX Morning Commentary

Good Morning,

Today's expected range for the Canadian Dollar‎ against the US Dollar is 1.0840-1.0900    

Today's expected range for the Canadian Dollar against the Euro is 1.4830-1.4900

Today's expected range for the Canadian Dollar against Sterling is 1.8200-1.8270   

The US Dollar is stronger this morning as the Euro-Zone GDP numbers came in below expectation, yet again we see another clear sign that the ECB will push ahead with its stimulus package next month. Low inflation and low growth are too very worrying signs for the region, if this stimulus plan does not yield the desired results then some of the EU countries will be in dire straits.

The British Pound is also weaker on worse than expected wages and jobs data. In addition to this report, Bank of England Governor Mark Carney is starting to sound like he wants to delay any interest rate hike as long as he possibly can, he seems to be worried about the strength in Sterling hurting the overall economy.

The Canadian Dollar continues to tread water against its US counterparts but the Loonie is looking like it wants to once again test stronger, I still believe that any further Canadian Dollar strength will be very slow and difficult as USD.CAD grinds lower. With the weakness in Europe the Loonie is doing quite well and represents great value for Euro Buyers at the moment, if you know you will need some Euro or Sterling in the near future now would be a good time to look at some forward contracts.

Up today we have a slew of US secondary data highlighted by the CPI report where we are expecting an monthly increase of 0.3% (last 0.2%) if we get a reading worse than expected I think you will see the Loonie rally a bit with USD.CAD dropping towards 1.0850.

A quick reminder that our office will be closed on Monday for the Victoria Day Holiday, make sure you get your overnight orders in early as the global currency markets will be open that day.

Have a great day.

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0874			1.0904
CAD/USD		0.9196			0.917
EUR/USD		1.366			1.3709
EUR/CAD		1.4856			1.4952
STG/CAD		1.8219			1.8289
AUD/CAD		1.0187			1.0234
CAD/JPY		93.72			93.38
CAD/CHF		0.8227			0.8157
CAD/HKD		7.1232			7.1041
CAD/CNY		5.7274			5.7081
CAD/MXN		11.8957			11.8755
Commodities
Gold		$1,305.00			$1,301.00
OIL		$101.94			$101.96
US DOLLAR INDEX
P.CLOSE		80.06			80.13
OPEN		80.26			80.05
US 10YR YIELD		2.54%			2.58%