GFX Morning Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.1780-1.1850

Today’s expected range for the Canadian Dollar against the Euro is 1.3890-1.3950

Today’s expected range for the Canadian Dollar against Sterling is 1.7800-17870

The US Dollar is marginally stronger this morning as the Euro has dropped further on a poor manufacturing report out of Germany, the case for massive stimulus by the ECB continues to grow. This morning ECB official stated that if Greece does not live up to her debt obligations then they will pull all funding, the rhetoric surrounding the Greek elections is starting to heat up which can only be bad for the Euro. Sterling was also hit as it seems to be trading in the same direction as the Euro at the moment. This morning the Bank of England left their key interest rates unchanged at 0.5% and did not make any changes to their bond buying program.

Oil had a relief rally trading back above $49 dollars a barrel last night, not sure it is anything more than a brief respite for the price of oil, with current volatility there is certainly room for it to test the $40 a  barrel in the coming weeks.

The Canadian Dollar is relatively stable at the moment against the Greenback but with the overnight weakness in the Euro and Sterling it was able to make some gains against those currencies. Given the price of oil is rising and stocks look set to bounce higher this morning we may get to see the Loonie stage a small rally today, nothing to get excited about but we should do a little better.

Nothing of note due out today , the market will start to get setup for tomorrow’s US and Canadian Employment reports, we should continue to trade around movement in oil and equities.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening			4pm close January 07, 2015
USD/CAD	1.1797				1.1833				1.1823
CAD/USD	0.8477				0.845				0.845
EUR/USD	1.1765				1.1827				1.1834
EUR/CAD	1.3883				1.3997				1.3994
STG/CAD	1.777				1.7909				1.7863
AUD/CAD	0.9567				0.9553				0.9539
CAD/JPY	101.32				100.66				100.71
CAD/CHF	0.8645				0.8577				0.8576
CAD/HKD	6.5497				6.533				6.5366
CAD/CNY	5.2573				5.2495				5.254
CAD/MXN	12.464				12.5094				12.4828
Commodities
Gold	$1,206				$1,213				$1,213.00
OIL	$49.05				$48.10				$48.60
US DOLLAR INDEX
OPEN	92.4				91.97				92.01
US 10YR YIELD	2.00%				1.97%				1.96%