GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.1980-1.2080

Today’s expected range for the Canadian Dollar against the Euro is 1.3950-1.40020

Today’s expected range for the Canadian Dollar against Sterling is 1.8250-1.8320

The US Dollar is again stronger this morning as the Euro and Sterling continue to drop lower, EURO.USD reached a new multi-year low at 1.1580 this morning. The market continues to be very volatile after the disastrous move by the Swiss National Bank yesterday, money flows continues to move towards the US Dollar so the pressure continues to mount to push the USD higher.

The Canadian Dollar has hit a new low against the US Dollar as it continues to lose ground against the Greenback, with the weakness in the Euro the Loonie has been able to hold onto it gains against the common currency, and it continues to tread water against Sterling. Of interest this morning is the Federal Government announcing that they are delaying the release of the budget for another month to look at how the low price of  oil will affect the revenues of the government, I think it is a safe bet that the prospect of a Surplus budget has gone the way of the Dodo bird, it will be interesting in an election year how they Conservatives handle this.

Up today we get the US CPI report for December, volatility will be enhanced by a decline in US inflation and may give US Dollar buyers a bit of a reprieve but barring any surprises we should still see USD.CAD go higher.

A quick reminder that Monday is a holiday in the US and the wire system is closed, if you need something to go out give us a shout today. Also get your orders in early as the currency markets will still be open and volatile on Monday.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening			4pm close Thursday January 15
USD/CAD	1.1986				1.1929				1.1962
CAD/USD	0.8343				0.8383				0.8383
EUR/USD	1.1591				1.169				1.169
EUR/CAD	1.3892				1.3947				1.3947
STG/CAD	1.8224				1.8183				1.8183
AUD/CAD	0.985				0.9803				0.9803
CAD/JPY	97.31				0.9761				0.9764
CAD/CHF	73.05				0.7371				0.7371
CAD/HKD	6.4455				6.4755				6.4755
CAD/CNY	5.1775				5.1876				5.1876
CAD/MXN	12.2429				12.2521				12.2521
Commodities
Gold	$1,259				$1,256				$1,259.00
OIL	$48.00				$48.25				$48.23
US DOLLAR INDEX
OPEN	92.5				91.97				92.32
US 10YR YIELD	1.73%				1.80%				1.74%