Good Morning,
Todays suggested range for the Canadian dollar against the US Dollar is .9920 - 1.0050
Todays suggested range for the Canadian dollar against the Euro is 1.3110-1.3250
Todays suggested range for the Canadian dollar against Sterling is 1.5700-1.5825
The US Dollar is weaker this morning on the announcement from the EU summit that the 17 Euro Nations have agreed a new set of rules on running deficits and agreed to let the 500 billion Euro fund flow faster into the countries that need it. The Euro was also buoyed by a statement from the Greek Prime Minister that negotiations on the debt swap were close to being completed the Euro which had spent the day falling yesterday against the Greenback jumped to trade at 1.3210 before giving back some gains and now trades at 1.3175.
Sterling also has been on a good run as of late with GBP.USD jumping to a 2 month high this morning, the Pound got a boost on the back of the Greek announcement but also from a stronger than expected Consumer Confidence report which showed that UK consumers are feeling better about their recovery.
The Canadian Dollar is stronger this morning as you would expect, with the weaker US Dollar overnight USD.CAD was able to move through par and spend most of the night trading stronger. I think we will see USD.CAD continue to oscillate around the 1.0000 level over the short-term as the currency will continue to follow the equity markets and any further developments out of Europe.
Up today we get the release of the Canadian GDP report for the 4th quarter and we may see some enhanced volatility around this number is it is worse than expectation. US dollar buyers should be trying to buy some at the .9950 level today if the Loonie continues to rally and should seriously be thinking about doing some forward contracts at these levels, USD.CAD may in fact go lower still but it is always wise to take some great rates off the table.
This I think will be the last email of the morning commentary in this format, we have been having many problems with Constant Contact delivering the email so we are going to try a new blog format (I am surprised I even know what a blog is!). You will receive an email tomorrow that will start off the commentary where you then will need to click a link and it takes you to the blog to finish reading the commentary. There is room on the blog for comments so feel free to leave any thoughts on the commentary or anything else that strikes your fancy. Hopefully more of the emails will get through, if it does not work any better we will go back to the drawing board and try and come up with a better solution.
Have a great day
Mike
*For current market prices please contact out currency advisors or visit out online siteLink.*
Currencies
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7:00am Today's Opening
|
Yesterday's Opening
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USD/CAD
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0.997
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1.0038
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CAD/USD
|
1.003
|
0.9962
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EUR/USD
|
1.3197
|
1.3124
| |||||
EUR/CAD
|
1.315
|
1.3177
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STG/CAD
|
1.5731
|
1.5757
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AUD/CAD
|
1.0633
|
1.06
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CAD/JPY
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76.57
|
76.31
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CAD/CHF
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0.9157
|
0.9142
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CAD/HKD
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7.7796
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7.7263
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CAD/CNY
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6.3233
|
6.3039
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Commodities
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Gold
|
$1,741
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$1,721
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OIL
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$100.30
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$99.23
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Option Volatility
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O/N
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13.33%
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13.32%
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1 Week
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10.32%
|
10.35%
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1 Month
|
9.82%
|
9.92%
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MORNING COMMENTARY
IMPROVED EUROPEAN SENTIMENT HITS GREENBACK
Investor sentiment improved following Greek Prime Minister Papademos stating debt swap
talks had made significant progress. Also helping the sentiment was an agreement on a fiscal pact
by 25 of the 27 European members. Both stocks and commodities are trading higher from the overnight
sessions on improved risk appetite. The USD is much lower against the broader market with month-end
flows playing a significant part. The Euro spiked above EUR/USD 1.3200 on better than expected German
unemployment data with the rate dipping to 6.7% from 6.8%. The commodity based currencies are out performing
with the Canadian dollar making strong gains ahead of today's important Canadian GDP data for November with
expectations of a 0.2% rise m/m. Dow futures are pointing higher by 65 points in pre-market trading with gains
in both oil and gold.
Richard Earl
Senior Trader
Richard Earl
Senior Trader
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