GFX Morning FX Commentary

Good Morning,

 

Today’s suggested range for the Canadian dollar against the USD is 1.1310 – 1.1370

Today’s suggested range for the Canadian dollar against the Euro is 1.4170 1.4250

 Today’s suggested range for the Canadian against Sterling is 1.7725 – 1.7825

 

The US dollar continues to strengthen against the Japanese Yen with the market setting its sights on the 120.00 handle before the New Year. The recent snap election call favours Japanese PM Abe which bodes well for further stimulus. The Nikkei made small gains overnight on the currency weakness which is a boost to exports.

 

Chinese HSBC/Market PMI showed factory output contracted for the first time in six months providing a dim outlook for global growth. The commodity based currencies were hit on the news but have since rallied back. The German data released overnight wasn’t any more encouraging as the private sector grew at its slowest pace in 16 months with recession fears resonating. The weak economic news overnight is putting pressure on the European stock indices all down significantly. The British pound rallied on stronger than expected retail sales for October rising 0.8% m/m versus expectations of 0.3%. The y/y U.K. retail sales grew 4.3% versus 3.8%. The upside momentum on the British Pound is limited however as sentiment remains bearish as the market is convinced interest rates will stay on hold for some time.

 

The Canadian dollar is off its worst levels form overnight as the market awaits fresh economic data out of the U.S. this morning. A full calendar of economic releases today beginning with the  U.S. consumer price index out at 8:30am along with initial jobless claims, followed by manufacturing PMI, existing homes sales, Philly Fed index and leading indicators. The lone indicator for CAD is wholesale sales for September.

The Fed minutes yesterday showed some concern for inflation which will give more importance to the CPI data this morning. The bottom line is that no interest rate hike is imminent.  

 

The price of oil is holding near the low end of $74.00 while gold is unchanged at $1192.00  The Dow futures are pointing for a lower opening off 64 in pre-market trading.

 

Have a great day!

 

 

GFX Morning Currency Rates
Thursday November 20, 2014
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1335			1.1336
CAD/USD		0.8822			0.8821
EUR/USD		1.2535			1.2531
EUR/CAD		1.4208			1.4208
STG/CAD		1.7768			1.7776
AUD/CAD		0.9765			0.9793
CAD/JPY		104.08			103.72
CAD/CHF		0.845			0.8453
CAD/HKD		6.8225			6.8185
CAD/CNY		5.4022			5.3969
CAD/MXN		12.0153			11.9975
Commodities
Gold		$1,193.00			$1,198.00
OIL		$74.46			$74.82
US DOLLAR INDEX
P.CLOSE		87.63			87.59
OPEN		87.73			87.66
US 10YR YIELD		2.32%			2.34%