GFX Morning Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0610-1.0660

Today's expected range for the Canadian Dollar against the Euro is 1.4520-1.4570

Today's expected range for the Canadian Dollar against Sterling is 1.8250-1.8300

The US Dollar is marginally stronger this morning. EURO.USD dropped from 1.3690 to 1.3650 but Sterling rose once again (a 21-month high against the Euro) on better than expected construction data and a housing report that showed that London home prices have surged the most since 1987, they are up 26% year-year. A number which will surely make BOE Governor Carney cringe. The Dollar also benefitted from a strong manufacturing report out of China.

The Canadian Dollar had an active day on Canada Day and once again jumped higher against the Greenback, we are now back at levels against the US Dollar which we saw at the beginning of the year. The Loonie is gaining some benefit from the recently weak numbers coming out of the US, I think this prolonged strength in the Loonie has caught many market watchers by surprise (including me) and it must be worrying now to the Bank of Canada. As long as the US Dollar remains in this weakening mode then the Loonie should be able to benefit.

We will have a busy time for the remainder of the week as we have some secondary data out of the US today along with Fed Chairperson Yellen is making comments to the IMF meeting, currency traders will be looking to see if she drops any hints about higher interest rates in the US. Tomorrow we will get a slew of US data as Friday is the holiday in the US, prime among the data is the US Employment report, more on that tomorrow.

For today I think we will see USD.CAD pull back a bit higher as we set up for the Employment report tomorrow. US Dollar sellers should be ready with orders at 1.0650 as we are still not seeing a lot of volatility.

Have a great day.

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0628			1.0642
CAD/USD
EUR/USD		1.3661			1.3675
EUR/CAD		1.4523			1.4523
STG/CAD		1.8239			1.8239
AUD/CAD		1.0051			1.0082
CAD/JPY		95.44			95.23
CAD/CHF		0.8356			0.8319
CAD/HKD		7.2699			7.2489
CAD/CNY		5.8424			5.8206
CAD/MXN		12.1716			12.1516
Commodities
Gold		$1,327.90			$1,326.60
OIL		$105.07			$105.71
US DOLLAR INDEX
P.CLOSE		79.87			80.02
OPEN		79.89			79.85
US 10YR YIELD		2.55%			2.55%