GFX Morning FX Commentary

Good Morning

Today’s expected range for the Canadian Dollar against the US Dollar is 1.2570-1.2640

Today’s expected range for the Canadian Dollar against the Euro is 1.4260-1.4330

Today’s expected range for the Canadian Dollar against Sterling is 1.9370-1.9440

The US Dollar is stronger hits morning as the markets digest the news that Greece and the EU have reached a deal to cover the country for the next 4 months. The deal is contingent on the Greek parliament agreeing to certain reforms, basically the same type of reforms that the original agreement was based on. The new Greek Government is saying they “won the battle” but the war is still ongoing. This is surely a case of the Syrzia party pulling a fast one, making promises to the Greek people to end austerity and in looking at it they have done nothing  but make a few cosmetic changes.

The Canadian Dollar continues to get hammered on the very poor Retail Sales report on Friday, what economy loses 2% in Retail Sales in December? No wonder we are seeing large retailers in the Canadian economy struggle. USD.CAD had a look above 1.2600 last night but fell back in early morning trading, the Loonie also suffered from the oil price falling below the $50 a barrel price during the night. It certainly looks now that USD.CAD is set for a move higher.

Up this week have inflation data out of the US and Canada on Thursday and the week will be highlighted by the US GDP report on Friday, that could give us a clue on what will happen with US interest rates in the coming months. Also this week we get a slew of Central bankers making speeches highlighted for us by Stephen Poloz, it certainly looks like volatility will still be around for the while.

Have a great seek and try and stay warm.

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening			4pm close Friday
USD/CAD		1.2594			1.2445			1.2531
CAD/USD		0.794			0.8035			0.798
EUR/USD		1.1309			1.1327			1.1309
EUR/CAD		1.4243			1.4098			1.4243
STG/CAD		1.9342			1.9116			1.9342
AUD/CAD		0.9814			0.9755			0.9814
CAD/JPY		94.5			95.41			94.5
CAD/CHF		0.7535			0.7642			0.7535
CAD/HKD		6.1351			6.2108			6.1351
CAD/CNY		4.9655			5.023			4.9655
CAD/MXN		12.0019			12.0596			12.0019
Commodities
Gold		$1,193			$1,203			$1,205
OIL		$49.63			$51.60			$50.45
US DOLLAR INDEX
OPEN		94.89			94.68			94.45
US 10YR YIELD		2.13%			2.11%			2.11%