GFX Currency 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 1.4210-1.4280

Today's expected range for the Canadian Dollar against Sterling is 1.7900-1.7970

The US Dollar is marginally weaker this morning as Sterling is a little higher on the release of the Bank of England policy minutes that showed for the 2nd consecutive month two members of the committee voted to increase interest rates. With tomorrow's independence vote too close to call Sterling trading is dominating the currency markets with Euro trading really taking a back seat.

Ahead of the Scottish vote, trading today will be dominated by the US Federal Reserve interest rate announcement. There will be no change to interest rates but if the announcement further emphasis a rate hike early in 2015 then the US Dollar will get a boost.

The Canadian Dollar is much stronger this morning following comments yesterday by Bank of Canada Governor Poloz, while taking questions from reporters he indicated that he will not intervene in markets to control the value of the Dollar and clearly stated that the Bank is more concerned with inflation than the value of the Loonie. “A floating Loon is a thing of beauty, and so is a floating Loonie” was his quote for the day, these statements caught a lot of people (including me) by surprise and the Loonie was able to extend its gains back below 1.1000. I have tended to find over the years that currency movements resulting from official comments are very short lived so if I was a US Dollar buyer I would be looking at these levels as a big win.

As mentioned above trading today will be dominated by the Fed announcement this afternoon, ahead of that we get US CPI data for August were we are expecting a year-over-year inflation rate of  1.9% down from last month’s 2.0%. and with the Scottish vote tomorrow I think we will see some enhanced volatility over the next few days, make sure you get your orders in early today to take advantage of any moves.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0965			1.1056
CAD/USD		0.912			0.9022
EUR/USD		1.2955			1.2941
EUR/CAD		1.4206			1.431
STG/CAD		1.7878			1.7907
AUD/CAD		0.994			0.9971
CAD/JPY		97.85			96.88
CAD/CHF		0.8517			0.8464
CAD/HKD		7.0484			6.9894
CAD/CNY		5.5968			5.5577
CAD/MXN		12.0269			11.9734
Commodities
Gold		$1,238.00			$1,234.00
OIL		$94.77			$92.67
US DOLLAR INDEX
P.CLOSE		84.07			84.25
OPEN		84.07			84.24
US 10YR YIELD		2.57%			2.56%