GFX Morning FX Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0800-1.0850

Today's expected range for the Canadian Dollar against the Euro is 1.4700-1.4750

Today's expected range for the Canadian Dollar against Sterling is 1.8420-1.8470

The US Dollar is‎ marginally weaker this morning as the Greenback continues to trade weaker post US Federal Reserve announcement. The Dollar remains under pressure as the Federal Reserve announced that interest rates will remain low for a considerable period of time. It is expected that next week’s US manufacturing data will show a bit of a slowdown in the US recovery so the stance by the Fed appears to be justified.

The Canadian Dollar continues to make very small gains as USD.CAD continues to drift lower in very narrow trading ranges. The Loonie continues to hold onto recent strength against the Euro and Sterling but so far over the last couple of days it has not been able to extend those gains.

We could get a jump in volatility today as we get the release of the Canadian CPI report for May and the Retail Sales report for April. Of the two reports the inflation one will be closely watched, we are expecting a 0.2% monthly inflation rate and a year-over-year inflation rate of 2.0%. If we see a jump in inflation then look for USD.CAD to break below the 1.0800 level. If we get a dramatic drop in inflation then look for USD.CAD to start to move back higher.

Have a great weekend

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0817			1.0815
CAD/USD		0.9245			0.9246
EUR/USD		1.3603			1.3625
EUR/CAD		1.4714			1.4743
STG/CAD		1.8442			1.0418
AUD/CAD		1.016			1.0185
CAD/JPY		94.32			94.12
CAD/CHF		0.8264			0.8253
CAD/HKD		7.1449			7.1434
CAD/CNY		5.7526			5.754
CAD/MXN		12.0522			12.0346
Commodities
Gold		$1,310.00			$1,282.00
OIL		$106.58			$106.41
US DOLLAR INDEX
P.CLOSE		80.33			80.41
OPEN		80.35			80.23
US 10YR YIELD		2.62%			2.58%