GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.2380-1.2480

Today’s expected range for the  Canadian Dollar against the Euro is 1.4140-1.4240

Today’s expected range for the Canadian Dollar against Sterling is 1.9190-1.9290

The US Dollar is mixed this morning as the market gets lined up for the US Federal Reserve announcement this afternoon. The Dollar is weaker against the Pound as the UK Employment rate fell to a six year low at 5.7% and wages rose more than expected, once again we see the UK data going in the opposite direction of Europe and the Pound getting some benefit. The Euro is slightly weaker this morning as markets are still awaiting word on a Greek/EU deal to provide much needed financing by the end of the  month, I am sure these negotiations will go down to the wire as they always seem to do.

The big news today will be centered around the US Federal Reserve decision on interest rates, there is no chance of any change to policy today and as I mentioned yesterday the markets will be looking for any change to the timing of the first increase in interest rates. Right now they are set to increase anywhere from June to September, if the recent spat of poor economic data out of the US and a global slowdown cause them to push back the timing of the increase we should see the US Dollar weaken, if they are still on target for this year then I think it will be US Dollar positive.

Once again the Canadian Dollar could not hold onto its gains from yesterday and the USD.CAD snapped back higher last night, the recent trading pattern continues to hold in place and will do so until we see what the Fed does today.   

In addition to the Fed announcement we get some secondary US data and also the Canadian Wholesale Trade numbers for December, we should have a fairly active day with lots of volatility especially after the Fed announcement, make sure you get your orders in early.

Mike

 

 

 

  

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening			4pm close Tuesday
USD/CAD		1.2443			1.2366			1.2372
CAD/USD		0.8036			0.8087			0.8082
EUR/USD		1.1363			1.1435			1.1412
EUR/CAD		1.4141			1.4144			1.4129
STG/CAD		1.9201			1.9042			1.9003
AUD/CAD		0.9702			0.967			0.9631
CAD/JPY		95.83			95.95			96.31
CAD/CHF		0.7549			0.7515			0.7562
CAD/HKD		7.7381			6.2482			6.2446
CAD/CNY		5.0252			5.0564			5.0544
CAD/MXN		12.0434			12.0046			12.0712
Commodities
Gold		$1,205			$1,223			$1,207
OIL		$52.70			$53.28			$53.05
US DOLLAR INDEX
OPEN		94.33			93.94			94.03
US 10YR YIELD		2.15%			2.05%			2.13%