GFX Morning FX Commentary

Good Morning,

 

Today’s suggested range for the Canadian dollar against the US 1.1350 – 1.1425

 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 1.8190 – 1.8290

 

The US dollar index has retreated slightly against most currency pairs with the lone exception being the Canadian dollar. The Japanese Yen rallied off seven year lows with recent movements seen overdone. The Aussie dollar strengthened overnight after the Reserve Bank of Australia left interest rates alone.

 The European single currency rallied for the first time in five days ahead of U.S. factory orders for September due out at 9:00am with expectations for a drop of 0.2% an improvement from the previous month`s slide of 10.1%.

 

The USD/CAD is fast approaching the 1.1400 handle as the price of oil is severely weighing on the Canadian dollar dropping another $2 a barrel overnight to open the North American session at $76.70 despite calls from Saudi Arabia to cut production. Another factor underlying the bearish sentiment on the currency is the fact that the Bank of Canada Governor still sees risks to the economy with no rush to raise interest rates.

Yesterday it was noted that real money managers were aggressively buying USD/CAD at 1.1300 which should prove to be short term support ahead of the CAD payroll data on Friday.

 

Today the economic calendar includes trade balances for both the U.S. and Canada. The price of gold held steady overnight with Dow futures lower by lower by 24 points.

 

Have a great day!

 

GFX Morning Currency Rates
Tuesday November 04, 2014
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1391			1.1283
CAD/USD		0.8779			0.8863
EUR/USD		1.2511			1.2491
EUR/CAD		1.4256			1.4096
STG/CAD		1.8225			1.8053
AUD/CAD		0.9957			0.9849
CAD/JPY		94.49			100.45
CAD/CHF		0.8452			0.8549
CAD/HKD		6.783			6.8514
CAD/CNY		5.365			5.42
CAD/MXN		11.9861			11.9633
Commodities
Gold		$1,172.00			$1,172.00
OIL		$76.70			$80.69
US DOLLAR INDEX
P.CLOSE		87.31			86.98
OPEN		87.15			87.15
US 10YR YIELD		2.32%			2.32%