GFX Morning Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0900-1.0950

Today's expected range for the Canadian Dollar against the Euro is 1.4610-1.4660

Today's expected range for the Canadian Dollar against Sterling is 1.8410-1.8460

The US Dollar is marginally stronger this morning as the Russian ban on agricultural products is weighing on the Euro-Zone’s already fragile economy. In the UK the Pound is approaching an 8-week low as the markets get ready for the Bank of England interest rate announcement this morning, they will not change their policy but markets will be looking for any kind of hint when the minutes are released (in two weeks) that future rate hikes are imminent.

We also get the European Central Bank reporting on interest rates this morning and just like the UK there is no expected change in Euro-Zone interest rates but of interest will be Governor Draghi’s press conference later this morning. Markets will be looking at his comments to get a sense of what is coming for the EU economy and if he mentions what effect the Russian ban will have on the economy. Overall I  still feel that Euro will continue to trade weaker over the coming weeks.

The Canadian Dollar had a strong day yesterday and staged a small rally but just as it looked like it was going to make a run it gave back some of the gains overnight. I think US Dollar buyers need to be ready to take advantage of these types of moves, with so much uncertainty in the market at the moment there is every reason to believe that the US Dollar could go on another big run in the near future.

Up today we do get some secondary US and Canadian data but for the most part the market will trade off of the ECB announcement, it could be a volatile day.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0923			1.0976
CAD/USD		0.9155			0.911
EUR/USD		1.3374			1.3341
EUR/CAD		1.4612			1.4646
STG/CAD		1.8406			1.8471
AUD/CAD		1.0125			1.0214
CAD/JPY		93.62			93.23
CAD/CHF		0.8313			0.8296
CAD/HKD		7.0736			7.0408
CAD/CNY		5.6411			5.6141
CAD/MXN		12.11			12.1248
Commodities
Gold		$1,305.50			$1,289
OIL		$96.68			$97.55
US DOLLAR INDEX
P.CLOSE		81.49			81.6
OPEN		81.55			81.73
US 10YR YIELD		2.45%			2.45%