GFX Morning Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0880-1.0930

Today's expected range for the Canadian Dollar against the Euro is 1.4570-1.4620

Today's expected range for the Canadian Dollar against Sterling is 1.8170-1.8220

The US Dollar is marginally stronger this morning as EU GDP reports showed that the region’s economy grew only 0.7% in the second quarter, while in Germany (the Zone’s biggest economy) the economy contracted 0.2%  and this is before the effect of reduced business with Russia. I would not be surprised if overall EU growth turns negative when the third quarter results are released.

In the UK the Pound is the lowest it has been in four months against the Greenback as the expectation of imminent interest rate hikes diminishes. With the current situation in Europe I doubt that we will see any interest rate hikes in the UK this year.

The Canadian Dollar staged a small rally against the US Dollar last night as the currency pair settles down to levels that we saw before the release last Friday’s erred Employment report, USD.CAD will most likely stay close to these levels ahead of the new release tomorrow.

Up today we get some secondary Canadian housing data but it won’t affect the currency, US Dollar buyers should take advantage of this pullback just in case the Employment report Is not as positive as some are hoping, if the report is negative then USD.CAD will jump much higher.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0893			1.0924
CAD/USD		0.918			0.9154
EUR/USD		1.3375			1.3352
EUR/CAD		1.4573			1.4588
STG/CAD		1.8175			1.8264
AUD/CAD		1.0144			1.0152
CAD/JPY		94.01			93.76
CAD/CHF		0.8315			0.8315
CAD/HKD		7.0934			7.0735
CAD/CNY		5.6487			5.6336
CAD/MXN		12.0524			12.038
Commodities
Gold		$1,312.00			$1,309.00
OIL		$97.45			$97.38
US DOLLAR INDEX
P.CLOSE		81.6			81.51
OPEN		81.54			81.63
US 10YR YIELD		2.42%			2.46%