GFX Morning Commentary

Good Morning,

Today's expected range for Canadian Dollar against the US Dollar is 1.1125-1.1180

Today's expected range for the Canadian Dollar against the Euro is 1.4160-1.4230

Today's expected range for the Canadian Dollar against Sterling is 1.8110-1.8170

The US Dollar is marginally stronger to start the new North American trading week. The big mover overnight was the New Zealand Dollar as the Reserve Bank of New Zealand announced that it's sale of NZ Dollars in August was the most in the last 7 years, this direct intervention in the market by the Central Bank has pushed the Kiwi Dollar down some 1.5% in overnight trading and it is dragging the Aussie Dollar along with it. Currently the NZD.USD currency pair is trading at .7770, I think the Reserve Bank would like to see it trade at .6500 so the currency pair has lots of room to drop.

Overall the US Dollar continues to get stronger as it is set for its biggest monthly gain since 2012, both the Euro and Sterling are slightly weaker against the dollar this morning with the trend for a weaker Euro still in place going forward.

The Canadian Dollar is unchanged this morning from our Friday close against the Greenback but it does continue to dramatically weaken off as it is being pushed lower by a stronger US economy and the prospect of higher interest rates in the US. I would not be surprised if USD.CAD tried a test of 1.1200 this week.

Up this week we get lots of US data to end the month including Personal Income and Expenditure today, Consumer Confidence tomorrow and then as we move into October we reset the cycle and get the important Jobs report out of the US on Friday.  In addition on Thursday we get the European Central Bank and we get Canadian GDP for the month of August tomorrow. On the Geo-political front we had some Ukrainian soldiers killed last night, the coalition bombing campaign continues in Syria and Iraq and in Hong Kong pro-democracy protests have grown in size and stature, overall it will be a busy and volatile week.

Have a great week

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1147			1.1094
CAD/USD		0.8971			0.9014
EUR/USD		1.2683			1.2743
EUR/CAD		1.4139			1.414
STG/CAD		1.8091			1.8109
AUD/CAD		0.9736			0.9759
CAD/JPY		98.75			98.22
CAD/CHF		0.8533			0.8543
CAD/HKD		6.9448			6.9705
CAD/CNY		5.5176			5.5227
CAD/MXN		12.1287			12.0677
Commodities
Gold		$1,227.00			$1,224.00
OIL		$93.04			$92.97
US DOLLAR INDEX
P.CLOSE		85.76			85.21
OPEN		85.68			85.23
US 10YR YIELD		2.52%			2.50%