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 1.4440-1.4490

Today's expected range for the Canadian Dollar against Sterling is 1.8260-1.8310

The US Dollar is marginally stronger as the Euro hit an 8-month low against the Greenback. In the UK Sterling was a little lower as the Bank of England policy meeting meetings were released and it showed that all members of the committee voted to keep interest rates at current levels, this was a bit surprising as it was thought that a few of the more hawkish members would ‎start to vote for a rate increase. The biggest currency mover overnight was the Australian Dollar as that economy reported high inflation numbers increasing speculation that the Reserve Bank of Australia will not be able to decrease interest rates next year.

An interesting note that is flying under the radar is the fact the Hungary (not a member of the EU) lowered their interest rates yesterday citing the fact that deflation had fully taken hold. I am sure this is going to spread to other EU countries and will put further pressure on the ECB to deal with the situation. As the EU also increases sanctions on Russia the European economy will surely take a further hit, look for the Euro to continue to trade with a weak bias over the coming months

The Loonie did garner a tiny bit of strength in overnight trading last night but it was nothing to get excited about and it has already given back that strength this morning as USD.CAD is back to where we closed it yesterday. The Loonie did pick up a little strength against both the Euro and Sterling as those currencies as mentioned traded weaker.

Up today we get the Canadian Retail Sales report for May where we are expecting an increase of 1.1%. I don’t think this number carries enough weight to really move the USD.CAD rate but a strong number may push us to the bottom end of recent ranges and a very weak number will edge the rate higher.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0722			1.0745
CAD/USD		0.9327			0.9307
EUR/USD		1.3469			1.348
EUR/CAD		1.4443			1.4489
STG/CAD		1.8275			1.8347
AUD/CAD		1.013			1.004
CAD/JPY		94.52			94.47
CAD/CHF		0.8409			0.8383
CAD/HKD		7.2065			7.1912
CAD/CNY		5.7779			5.7709
CAD/MXN		12.0744			12.0833
Commodities
Gold		$1,308.00			$1,307.00
OIL		$102.41			$105.06
US DOLLAR INDEX
P.CLOSE		80.77			80.56
OPEN		80.75			80.73
US 10YR YIELD		2.46%			2.48%