GFX Morning FX Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0740-1.0790

Today's expected range for the Canadian Dollar against the Euro is 1.4560-1.4610

Today's expected range for the Canadian Dollar against Sterling is 1.8430-1.8480

The US Dollar is stronger this morning as EURO.USD firmly trades below the 1.3600 level. Sterling continued it's amazing run as it hit a 22-month high against the Euro, a strong employment report helped push the Pound higher again, it did move more against the Euro than it did against the US Dollar. We continue to look at the Bank of England for an interest rate hike sooner than later.

The US Dollar is also getting a boost from the comments yesterday from Federal Reserve Chairperson Janet Yellen where she indicated a significant interest rate hike by the end of 2105 could happen, that is a little earlier than some economist have predicted. The Dollar is also getting a boost from Chinese GDP numbers that came in as expected at an annualized rate of 7.5%, I think Western economies would love a growth rate just half of that number.

The Canadian Dollar continues to lose ground as a result of the disastrous employment on Friday and the overall stronger US Dollar. Not only is it losing ground to the Greenback but also to Euro and Sterling, weakness in the Euro is helping a bit but the Loonie continues to lose ground to the common currency.

Up today trading will be dominated by Bank of Canada interest rate announcement and the Banks Quarterly Monetary Policy Report . It is expected that the Bank of Canada will keep the status quo and indicate that the slack in the economy will allow for prolonged low interest rates as inflation should remain contained for the foreseeable future. If the announcement is as expected I would expect USD.CAD to jump a bit higher.

I will send out a currency alert shortly after the announcement. 

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0765			1.0733
CAD/USD		0.9289			0.9317
EUR/USD		1.3535			1.3601
EUR/CAD		1.4572			1.46
STG/CAD		1.8446			1.8405
AUD/CAD		1.0063			1.0056
CAD/JPY		94.48			94.59
CAD/CHF		0.8339			0.8314
CAD/HKD		7.1787			7.1994
CAD/CNY		5.7602			5.7802
CAD/MXN		12.0426			12.1058
Commodities
Gold		$1,299.00			$1,311.00
OIL		$100.74			$100.25
US DOLLAR INDEX
P.CLOSE		80.39			80.17
OPEN		80.51			80.25
US 10YR YIELD		2.54%			2.53%