GFX Morning FX Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0855-1.0910

Today's expected range for the Canadian Dollar against the Euro is 1.4890-1.4950

Today's expected range for the Canadian Dollar against Sterling is 1.8250-1.8310

The US Dollar is marginally stronger this morning as all major currency pairs traded in quiet market conditions. In overnight news of note the Chinese Yuan traded lower as the Government is hinting that it wants a lower exchange rate to help boost exports, in Japan the Yen continues to get stronger on safe haven flows and in India the Rupee is 0.5% stronger as the opposition Congress party is poised for the biggest election win in over 30 years.

Perhaps the biggest financial market story of the past week was the drop in interest rates in the US. The US 10-year treasury yield dropped from a high over the last few weeks of 2.7% to now trade at 2.47%. Most bond traders were expecting the rate to rise to 3.0% over the next few months as the Federal Reserve removes stimulus so I think this move has caught the bond market by surprise. It says to me that we will not see any interest rate hikes by the Federal Reserve for some time yet, the move should be very positive for Equities and slightly negative for the US Dollar.

The Canadian Dollar continues to trade in tight ranges against the US Dollar and is making further gains against the Euro and Pound, I still favour a move higher for USD.CAD but right now there could be a little further short-term pressure to strengthen the Loonie.

Up today only some secondary US data including Consumer Sentiment at 10:00 am, ahead of the long weekend I am not looking for much of a trading range but US Dollar buyers could see slightly better levels to start the day.

Just a reminder that we will be closed on Monday but the currency markets will still be trading around the globe, get your overnight orders in early today.

Have a great long weekend

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0876			1.0874
CAD/USD		0.9195			0.9196
EUR/USD		1.3688			1.366
EUR/CAD		1.4889			1.4856
STG/CAD		1.8262			1.8219
AUD/CAD		1.0181			1.0187
CAD/JPY		93.22			93.72
CAD/CHF		0.8197			0.8227
CAD/HKD		7.1222			7.1232
CAD/CNY		5.7292			5.7274
CAD/MXN		11.9449			11.8957
Commodities
Gold		$1,295.00			$1,305.00
OIL		$101.71			$101.94
US DOLLAR INDEX
P.CLOSE		80.03			80.06
OPEN		80.09			80.26
US 10YR YIELD		2.50%			2.54%