GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.1180-1.1240

Today’s expected range for the Canadian Dollar against the Euro is 1.4240-1.4300

Today’s expected range for the Canadian Dollar against Sterling is 1.8070-1.8130

The US Dollar is marginally weaker this morning in narrow trading ranges against the major currencies. The Big mover overnight was the Swedish Krona where in a continuing attempt to fight deflation the Swedish Central Bank (the Riksbank) cut their main interest rate to 0% from 0.25%. The currency markets did not anticipate that the Bank would cut as much as they did and as such the SEK had a fairly big drop both against the US and Canadian Dollars. The Russian Ruble was also a big mover overnight as rumours persist that the Russian government will allow the Ruble to free-float on the open market. Since sanctions were introduced the Russian Central Bank has put some $20 Billion US Dollars into the currency market to try and defend the value of the Ruble and so far it  has had no effect, the Ruble continues to decline. I would guess with the sanctions the country is running out of US dollars.

The Canadian Dollar rebounded a little last night in a narrow range as it continues to pullback from its lowest point against the US Dollar while I was away on holidays. I still don’t see a scenario at the moment where the Loonie will start to have a big run so I would still advocate that US Dollar buyers need to be ready with their orders any time we see a dip in USD.CAD.

Up today we have a series of US secondary data including Consumer Confidence and Durable Goods Orders, the market will use these reports to get set up for the Federal Reserve announcement on interest rates tomorrow.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1217			1.1232
CAD/USD		0.8915			0.8903
EUR/USD		1.2692			1.2674
EUR/CAD		1.4238			1.4237
STG/CAD		1.8073			1.809
AUD/CAD		0.9905			0.9887
CAD/JPY		96.29			95.95
CAD/CHF		0.8464			0.8465
CAD/HKD		6.8939			6.8853
CAD/CNY		5.4494			5.4415
CAD/MXN		12.0822			12.1449
Commodities
Gold		$1,228.00			$1,230.00
OIL		$81.05			$80.46
US DOLLAR INDEX
P.CLOSE		85.55			85.71
OPEN		85.63			85.69
US 10YR YIELD		2.26%			2.27%