GFX Morning Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0810-1.0870

Today's expected range for the US Dollar against the Euro is 1.4770-1.4850

Today's expected range for the Canadian Dollar against Sterling is 1.8210-1.8280   

The US Dollar is marginally weaker in quiet overnight markets as the US and UK get back from their long weekend. The Euro had a narrow trading range as the currency market is awaiting a speech from ECB Governor Draghi later this morning where he is expected to highlight the bank's concern about deflation.

The Canadian Dollar is marginally stronger this morning as USD.CAD ever so slowly continues to move lower, the Loonie continues to improve both against the Euro and Sterling and looks set for further gains as we await both the US and Canadian GDP reports later this week.

Up today we get the release of the US Durable Goods report for April, lately we have seen a slowdown in economic releases from the US so a poor Goods report could help to push USD.CAD lower this morning, we are expecting a decrease of 0.7% so any number much worse than that could send the US Dollar on a bit of a spin lower. The US Dollar should remain weak as long as the US bond yields remains as low as they are, keep an eye on the 10-year US treasury bond which is trading at 2.54%, if that rate continues to drop then we should see the US Dollar trade a little weaker against the Loonie

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.084			1.086
CAD/USD		0.9225			0.9208
EUR/USD		1.3645			1.3639
EUR/CAD		1.4792			1.4813
STG/CAD		1.824			1.8291
AUD/CAD		1.0037			1.0031
CAD/JPY		94.01			93.8
CAD/CHF		0.8259			0.8241
CAD/HKD		7.1471			7.1134
CAD/CNY		5.761			5.7423
CAD/MXN		11.9005			11.8683
Commodities
Gold		$1,284.00			$1,294.00
OIL		$104.03			$104.02
US DOLLAR INDEX
P.CLOSE		80.28			80.37
OPEN		80.27			80.3
US 10YR YIELD		2.54%			2.53%