GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0730-1.0780

Today’s expected range for the Canadian Dollar against the Euro is 1.4530-1.4580

Today’s expected range for the Canadian Dollar against Sterling is 1.8360-1.8410

The US Dollar is stronger this morning as the prospect of more Western sanctions on Russia have unnerved the equity markets and pushed the US Dollar higher on the safe haven effect (money leaving global equity markets and buying US treasury bonds for the low-risk and safety). In Europe the Euro is lower on their inflation numbers remaining below the ECB target range, with the risk of deflation still prevalent the European Central Bank will almost certainly look at continued low-interest rates and possible stimulus. Sterling also traded weaker on the Russia announcement as it flirts with the 1.7100 level.

The Canadian Dollar once again demonstrated it resilience yesterday, after the negative report from the Bank of Canada USD.CAD jumped much higher but just as it look that it would go on a big run the Loonie recovered and USD.CAD set a new low on the day. With the strong US Dollar overnight the Loonie gave up some gains and trades right in the middle of its recent range. The Loonie was able to extend some gains last night against the Euro and Sterling as both of those currencies weakened more against the US Dollar that the Loonie did.

We have some secondary US data due to be released today but I don’t think that it will have much effect on the market, the Loonie should get some direction from the equity markets, if we see a big drop on Wall Street then I think you will see USD.CAD head a bit higher.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0752			1.0765
CAD/USD		0.93			0.9289
EUR/USD		1.3527			1.3535
EUR/CAD		1.711			1.4572
STG/CAD		1.8401			1.8446
AUD/CAD		1.0076			1.0063
CAD/JPY		94.32			94.48
CAD/CHF		0.8347			0.8339
CAD/HKD		7.1866			7.1787
CAD/CNY		5.7687			5.7602
CAD/MXN		12.0628			12.0426
Commodities
Gold		$1,303.00			$1,299.00
OIL		$102.27			$100.74
US DOLLAR INDEX
P.CLOSE		80.56			80.39
OPEN		80.53			80.51
US 10YR YIELD		2.51%			2.54%