GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.1120-1.1200

Today’s expected range for the Canadian Dollar against the Euro is 1.4200-1.4300

Today’s expected range for the Canadian Dollar against Sterling is 1.7970-1.8070

The US Dollar is for the most part unchanged as the financial markets get set for the release of the US Federal Reserve interest rate announcement. Some concern arose yesterday about what the Fed will say as it looks like we are getting an uneven recovery in the US, both Durable goods and Home prices reported disappointing numbers while Consumer Confidence hit a seven-year high in October.

The Canadian Dollar was very quiet last night, it continues to hold onto the strength that it picked up yesterday after the disappointing US Durable Goods report and for the  most part it should remain in a tight range ahead of the Federal Reserve announcement at 2:00 pm this afternoon. There is no chance that the Fed will increase rates today so the market will be watching the accompanying statement, if they take the phrase interest rates will stay low for a “considerable time” then the US Dollar should get hit hard, if they leave the phrase in then I think you will see the US Dollar start to jump again. Either way I think we will see some enhanced volatility so get your orders in early.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.116			1.1217
CAD/USD		0.8961			0.8915
EUR/USD		1.2733			1.2692
EUR/CAD		1.421			1.4238
STG/CAD		1.7987			1.8073
AUD/CAD		0.9906			0.9905
CAD/JPY		96.84			96.29
CAD/CHF		0.8482			0.8464
CAD/HKD		6.9281			6.8939
CAD/CNY		5.4737			5.4494
CAD/MXN		12.069			12.0822
Commodities
Gold		$1,228.00			$1,228.00
OIL		$82.21			$81.05
US DOLLAR INDEX
P.CLOSE		85.39			85.55
OPEN		85.41			85.63
US 10YR YIELD		2.29%			2.26%