GFX Morning FX Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0880-1.0940

Today's expected range for the Canadian Dollar against the Euro is 1.4750-1.4810

Today's expected range for the Canadian Dollar against Sterling is 1.8280-1.8340

The US dollar is stronger this morning as the interbank EURO.USD rate continues to move lower towards the year low of 1.3480, the Euro is also weak against Sterling as the UK reported stronger manufacturing data, highlighting once again the divergence in the different economies between the UK and the EU. The expectation is that the ECB will continue to add stimulus to the Euro-Zone economy which will drive the Euro down further.

The Canadian Dollar is unchanged against the US Dollar which just highlights the Loonie's recent resilience. After such a strong performance for the US Dollar against the Euro last night, under normal conditions USD.CAD would have been higher this morning as well but as we see this is not the case. The Loonie was able to extend some gains against the Euro making them cheaper to buy. I still feel there is room for EURO.CAD to drop some more but given where we are(and where the EURO.CAD rate had been)it is prudent that Euro buyers take advantage of these rates at this time.

‎The only economic data out of North America today is the US Wholesale Trade report which will not have much effect on the currency markets. I look for USD.CAD to trade in a tight range close to current levels. Most of today’s activity will be directed by the Euro, if we see EURO.CAD continue to drop then I think we will see USD.CAD break lower.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0912			1.0921
CAD/USD		0.9164			0.9167
EUR/USD		1.3541			1.3621
EUR/CAD		1.4782			1.4878
STG/CAD		1.831			1.8358
AUD/CAD		1.0217			1.0278
CAD/JPY		93.75			93.78
CAD/CHF		0.8245			0.8193
CAD/HKD		7.081			7.0759
CAD/CNY		5.7029			5.7107
CAD/MXN		11.9461			11.8494
Commodities
Gold		$1,253.00			$1,258.00
OIL		$104.77			$103.24
US DOLLAR INDEX
P.CLOSE		80.64			80.43
OPEN		80.82			80.5
US 10YR YIELD		2.61%			2.61%