GFX Mornng FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.2400-1.2470

Today’s expected range for the Canadian Dollar against the Euro is 1.4120-1.4190

Today’s expected range for the Canadian Dollar against Sterling is 1.9300-1.9370

The US Dollar for the most part is unchanged this morning as the overseas markets digest Fed Chairperson Yellen comments and get set for US CPI data. The Dollar remains under a little pressure as Yellen stated that it will be unlikely that there will be an interest rate increase in the next couple of Fed meetings. The Euro is unchanged from our close yesterday in spite of an improving employment picture and better consumer confidence in Germany.

The Canadian Dollar could not extend it gains which it experienced when Poloz was talking yesterday, USD.CAD snapped back higher last night. Once again the Loonie remains under pressure and even positive news cannot start it on a roll.

In addition to the US CPI today we also get the Canadian CPI where we are expecting an increase of 0.8% which would bring a year-over-year rate of 2.2% (up from 2.1%). Inflation at the moment does not seem to be a major concern of the Bank of Canada so I am not looking for a great deal of volatility from the this number.

Have a great day

Mike