GFX Morning Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0710-1.0760

Today’s expected range for the Canadian Dollar against the Euro is 1.4600-1.4650

Today’s expected range for the Canadian Dollar against Sterling is 1.8400-1.8450

The US Dollar is mixed this morning  as it is stronger against the Euro but weaker against Sterling. In the UK the June inflation report showed that inflation was on the rise reaching 1.9% on an annualized basis, up from 1.5% the previous month. Another strong reason why the Bank of England should be increasing interest rates this year, Sterling will remain strong as long as this situation holds.

Overall the US Dollar was stronger against everything else as the North American markets get ready for Fed Chairperson Yellen’s comments to US lawmakers. The market will be looking for any kind of hints on when higher interest rates are coming.

The Canadian Dollar is back trading in tight ranges as it settles into its new level, it will more than likely stay in narrow ranges until the Bank of Canada interest rate announcement tomorrow. In addition to Yellen we also get the US Retail Sales for the month of June, we are expecting an increase of 0.6% (last 0.3%) but unless it is a widely surprising number I think the market will await Yellen comments before we see any real movement.

Overall we still expect USD.CAD to jump higher but like the last few weeks it may be a slow and gradual process. US Dollar buyers still need to look at these levels as a good opportunity to put on  some medium term forward contracts.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0733			1.0734
CAD/USD		0.9317			0.9316
EUR/USD		1.3601			1.3628
EUR/CAD		1.46			1.463
STG/CAD		1.8405			1.837
AUD/CAD		1.0056			1.0086
CAD/JPY		94.59			94.49
CAD/CHF		0.8314			0.8295
CAD/HKD		7.1994			7.1984
CAD/CNY		5.7802			5.7794
CAD/MXN		12.1058			12.1305
Commodities
Gold		$1,311.00			$1,323.00
OIL		$100.25			$100.48
US DOLLAR INDEX
P.CLOSE		80.17			80.18
OPEN		80.25			80.15
US 10YR YIELD		2.53%			2.52%