GFX Morning FX Commentary

Good Morning,

 

Today’s suggested range for the Canadian dollar against the US dollar is 1.1210 – 1.1280

 

Today’s suggested range for the Canadian dollar  against the Euro  is 1.4200 – 1.4300

 

Today’s suggested range for the Canadian dollar against Sterling is 1.7900 -  1.8000

 

The global stock markets are under considerable pressure as growth fears escalate. The US dollar index is lower from our Friday close with a real mix of currency moves among the major currencies. The safe haven flows are moving into the Japanese Yen and the Swiss franc. The Antipodean currencies AUD and KIWI are both firmer attracting flows on higher interest rate differentials as yields plummet.

 

The European single currency is weaker as recession concerns undermine the currency. German ZEW economic sentiment index dropped to -3.6 in October from +6.9 in September. Also Eurozone Industrial production declined by 1.8% in August from expectations of 1.6%.

The British pound is also weak following U.K. PPI core index m/m expected to be flat and was actually down 0.1%. The overall markets are grappling with a potential recession in Europe and deflation concerns.

 

The Canadian dollar has weakened further post the stellar jobs report last Friday exceeding economists’ expectations by more than three times. The market is still in disbelief that the CAD jobs report could be that robust up 74.1k for September and given the previous month down 11k, all the while, GDP for July was flat and for August we showed a trade deficit. The high for the USD/CAD this year is 1.1280 which will be seen as the next resistance.

 

Today the economic calendar is empty for North America so direction will come from stocks and bonds. The U.S. stock market was open yesterday with the Dow falling 223 points. The Dow futures are pointing higher by 25 with the U.S. Treasury 10 yr. yield making a new low for the year yesterday at 2.20% currently trading at 2.21%.

 

Have a great day!

 

GFX Morning Currency Rates
Tuesday October 14, 2014
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1256			1.12
CAD/USD		0.8884			0.8929
EUR/USD		1.2648			1.2662
EUR/CAD		1.4238			1.4179
STG/CAD		1.7951			1.7964
AUD/CAD		0.9817			0.9759
CAD/JPY		94.9			96.23
CAD/CHF		0.8483			0.8527
CAD/HKD		6.87			4.9092
CAD/CNY		5.4394			5.4741
CAD/MXN		11.9849			12.0556
Commodities
Gold		$1,233.00			$1,222.00
OIL		$84.84			$84.56
US DOLLAR INDEX
P.CLOSE		85.91			85.54
OPEN		85.76			85.7
US 10YR YIELD		2.21%			2.30%