GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.2050-1.2150

Today’s expected range for the Canadian Dollar against the Euro is 1.3970-1.4070

Today’s expected range for the Canadian Dollar against Sterling is 1.8235-1.8335

The US Dollar is marginally weaker this morning as the world’s major Central Banks start to report in. First up last night was the Bank of Japan and they announced that there would be no new economic stimulus measures unveiled, in the UK the minutes from the last Bank of England policy meeting were released and there was a unanimous consensus among committee members not to increase interest rates due to low inflation concerns, Sterling traded weaker on this report.

The one everyone is waiting for is of course the European Central Bank who announces their most recent policy tomorrow, they are expected to announce a massive stimulus program to try and help the EURO economy recover. My own expectation is that the ECB will disappoint the market and the stimulus program will not be deemed sufficient but we shall see tomorrow, I don’t believe the ECB has the political mandate form the member countries. We area also seeing in the latest Greek polls that the anti-Europe Syriza party seems to be heading to an absolute majority, I think this would be very negative for the Euro as it could be the start of a breakup.

The battered and bruised Canadian Dollar had a quiet overnight session, this was after USD.CAD jumped almost 150 points yesterday, there seems no respite for the Loonie at the moment.

All eyes today will be on the Bank of Canada announcement, there will be no change in interest rate policy but the accompanying statement surely will change the Banks’s tone as they indicate a slowdown in the economy and they may mention slowing inflation brought on by the decline in the price of oil. I think we can say good-bye to interest rate hikes this year, we will see if they hint an interest rate cut later in the year.

I will send out a currency alert shortly after the announcement.

Have a great day

 

Mike

 

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening			4pm close January 20, 2015
USD/CAD		1.2087			1.1982				1.2109
CAD/USD		0.8273			0.8345				0.8258
EUR/USD		1.1578			1.157				1.1550
EUR/CAD		1.3991			1.387				1.3988
STG/CAD		1.8285			1.815				1.8337
AUD/CAD		0.9921			0.9826				0.9901
CAD/JPY		97.27			98.98				98.0400
CAD/CHF		0.7155			0.7309				0.7229
CAD/HKD		6.3943			6.4472				6.3832
CAD/CNY		5.1384			5.1837				5.1297
CAD/MXN		12.1351			12.2383				12.1421
Commodities
Gold		$1,298			$1,287				$1,294.00
OIL		$46.78			$48.08				$46.66
US DOLLAR INDEX
OPEN		92.73			92.84				93.04
US 10YR YIELD		1.81%			1.81%				1.79%