GFX Morning FX Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0950-1.1020

Today's expected range for the Canadian Dollar against the Euro is 1.4120-1.4190

Today's expected range for the Canadian Dollar against Sterling is 1.7670-1.7730

The US Dollar is marginally weaker overnight as comments from BOE Carney on the strength of the UK recovery helped stall the drop of the Pound, Sterling still remains under pressure ahead of the Scottish vote. The Euro remains under pressure as EURO.USD has fallen below 1.2900 and traded down to 1.2860 overnight before recovering a bit this morning. In China the dollar is weaker against the Yuan as the government raised the peg of the currency to 6.1520 the highest level in 6-months.

For Sterling buyers who are waiting for further declines in the Pound be aware that if a poll shows this week or next putting the no campaign back in front then you will see Sterling snap back quickly and you will miss your opportunity, my suggestion would be to protect yourself by buying at least some of your exposure at current levels and then see what develops. We have a client back in Scotland who told me this morning that Scots are not actually voting "Yes" or "No" on the 18th but are voting "Yea" or "Nae", use you best Scottish accent when you say that!

The Canadian Dollar is marginally weaker against the US Dollar this morning as it pushes up against the high-end of recent ranges. With the weakness in the Euro and Sterling the Loonie continues to make gains against those currencies, the Loonie’s strength against those currencies is also helping the Loonie slow it's decline against the US Dollar.

With nothing but Canadian Housing Starts on the agenda today I look for USD.CAD to pullback a bit creating an opportunity for US Dollar buyers, overall we still favour a push above the 1.1000 level but for now that may be a bit difficult.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.098			1.0904
CAD/USD		0.9107			0.917
EUR/USD		1.2888			1.2947
EUR/CAD		1.4157			1.4116
STG/CAD		1.771			1.7573
AUD/CAD		1.0192			1.019
CAD/JPY		96.65			96.44
CAD/CHF		0.8516			0.8543
CAD/HKD		7.0369			7.088
CAD/CNY		5.5865			5.6291
CAD/MXN		12.0129			11.9795
Commodities
Gold		$157.00			$1,268.00
OIL		$93.47			$92.62
US DOLLAR INDEX
P.CLOSE		84.28			83.85
OPEN		84.3			83.93
US 10YR YIELD		2.50%			2.43%