Today's expected range
for the Canadian Dollar against the US Dollar is 1.0900-1.0960
Today's expected range for the Canadian Dollar against the Euro is 1.4820-1.4880
Today's expected range for the Canadian Dollar against Sterling is 1.8300-1.8360
The US Dollar is for the most part unchanged this morning as the markets got ready for this morning's ECB and Bank of England interest policy announcements.
As we have been
reporting over the past month the European Central Bank is expected to announce
a massive stimulus program to kick-start the EU economy, it is expected that
they will drop their key lending rate to 0.1% from 0.25%, take the interest
rate held on deposits at the ECB to negative -0.25% and start a bond buying
program to flood the financial markets with cheap money. As I am writing the ECB
announcement has hit the market, they have indeed lowered their key lending
rate to 0.10%, they have reduced the deposit rate to -0.1% (banks will pay them
to hold their money at the Central bank) and they have reduced their marginal
lending facility to .60% from .75%. So far there is no mention of a bond buying
program but that may be announced by Governor Draghi at his press conference at
08:30 or he may hint that further stimulus measures will be introduced next
month. Shortly after this announcement the Euro did drop a bit against the US
Dollar and it does look to be under pressure for the next little while.
The Bank of England as
expected did not change its interest rate or stimulus program. The minutes of
this meeting will be released in a couple of weeks which many economists will
be looking to see if the Bank of England will start to pull back on their
stimulus program. Sterling also dropped a little this morning against the US
after the ECB announcement.
After a quick
weakening yesterday from the Bank of Canada interest rate statement, USD.CAD
settled down to a tight overnight trading range, as I mentioned yesterday the
Bank of Canada seems to want to help the Loonie trade weaker in an effort to
boost the export market. USD.CAD did not have much reaction to the ECB
announcement but with the weak Euro, EURO.CAD is moving lower.
In addition to the ECB
announcement and press Conference at 08:30 this morning we do get some
secondary data from Canada’s housing market today. For the most part North
American will have a quiet trading day as we get set up for the Canadian and US
employment reports due out tomorrow morning. I look for USD.CAD to trade
slightly higher throughout the morning.
Have a great day
Mike
GFX
Morning Currency Rates
|
|||||||
| Currencies | 7:00am Today's Opening | Yesterday's Opening | |||||
| USD/CAD | 1.0937 | 1.0928 | |||||
| CAD/USD | 0.9143 | 0.915 | |||||
| EUR/USD | 1.3611 | 1.3611 | |||||
| EUR/CAD | 1.4891 | 1.4874 | |||||
| STG/CAD | 1.8343 | 1.8281 | |||||
| AUD/CAD | 1.016 | 1.013 | |||||
| CAD/JPY | 93.68 | 93.95 | |||||
| CAD/CHF | 0.8185 | 0.8204 | |||||
| CAD/HKD | 7.0663 | 7.0744 | |||||
| CAD/CNY | 5.716 | 5.7165 | |||||
| CAD/MXN | 11.8348 | 11.8595 | |||||
| Commodities | |||||||
| Gold | $1,245.00 | $1,245.00 | |||||
| OIL | $102.33 | $103.33 | |||||
| US DOLLAR INDEX | |||||||
| P.CLOSE | 80.67 | 80.55 | |||||
| OPEN | 80.58 | 80.62 | |||||
| US 10YR YIELD | 2.58% | 2.58% | |||||
