GFX Morning Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0960-1.1030

Today's expected range for the Canadian Dollar against the Euro is 1.4200-1.4270

Today's expected range for the Canadian Dollar against Sterling is 1.7710-1.7780

The US Dollar is unchanged against the majors this morning from our close yesterday as the currencies settle into their new ranges. The Aussie Dollar was a big mover overnight as it dropped over 100 points against the US Dollar after a report showed the Consumer Confidence was waning in Australia. The Dollar also continues to soar against the Japanese Yen as the prospect of further stimulus measures weighs on the market drove the dollar to a 6-month high.

In the UK I am reminded of the days before the last Quebec sovereignty referendum, all the leaders of the political parties are in Scotland trying to affect the vote, Unionists are planning a big march in Edinburgh and the political leaders have even tried to get the Queen involved on the No side, she of course told the leaders to leave the monarchy out of it. This vote will go down to the wire and will keep currency markets on edge for a while yet.

The Canadian Dollar is right where we left it last night as it traded a bit weaker against the USD in Asia but it was able to recover that strength into the London market. As I mentioned at the end of August the increase in volatility that I was expecting seems to be occurring on a regular basis now, to maximize the value of your transactions make sure that you are leaving overnight orders, we are starting to see many clients once again get added value every morning. The Loonie continues to hold its strength against the Euro and Sterling as those currencies remain weak, I look for the Loonie to continue to make small gains against these currencies ahead of the Scottish vote.

Up today we only get US Home sales so I am not expecting much movement outside our recent range, we may get some added volatility this evening around Obama’s announcement regarding Iraq, it looks like he is going to announce a coalition of the willing to fight ISIS, make sure you have your orders in early today.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0974			1.098
CAD/USD		0.9112			0.9107
EUR/USD		1.2949			1.2888
EUR/CAD		1.4212			1.4157
STG/CAD		1.77			1.771
AUD/CAD		1.0035			1.0192
CAD/JPY		97.1			96.65
CAD/CHF		0.8494			0.8516
CAD/HKD		7.04			7.0369
CAD/CNY		5.5827			5.5865
CAD/MXN		12.0325			12.0129
Commodities
Gold		$1,255.00			$1,257.00
OIL		$92.86			$93.47
US DOLLAR INDEX
P.CLOSE		84.08			84.28
OPEN		84.11			84.3
US 10YR YIELD		2.52%			2.50%