Good Morning,
Today's suggested range for the Canadian dollar against the US Dollar is 1.0075-1.0190.
Today's suggested range for the Canadian dollar against the Euro is 1.3100-1.3200
Today's suggested range for the Canadian dollar against Sterling is 1.5760-1.5880
The US Dollar is stronger this morning as the markets have reacted to the EU comments that they are unwilling to restructure(take a loss) on the 40 billion Euro that they have loaned Greece as the IMF politely suggested they do. EURO.USD which had reached 1.3065 yesterday (a January high) fell back to trade at 1.2930, the Euro continues to trade within the similar pattern that we have seen over recent months, it starts to show signs of strength and then some news comes out that worries investors and the Euro falls right back to lower levels. The Euro has remained fairly stable against the Loonie but that is because the Canadian Dollar lost some ground to the Greenback overnight as well.
This afternoon's trading will be influenced by the US Federal Reserve's announcement on interest rates, we are of course not expecting any change in interest rates (they will remain at 0.25%) but the markets will be looking at their expectation of when they will start to push interest rates higher. Right now the expectation is for an interest rate rise in the 2nd half of 2013, if they give an indication that an eventual rise has been pushed back to 2014 look for equity markets to get hit and the US Dollar to jump higher.
Once again USD.CAD failed to break below the 1.0100 level last night and has again moved higher in quiet Asian and European trading conditions. Each time USD.CAD tries to break below 1.0100 over the past few weeks some negative news hits the market out of Europe, the Euro loses value and the USD.CAD currency pair moves higher, I look for this trend to continue over the short-term before we will get an eventual move lower and a USD.CAD exchange rate near par. If we do see a move higher for USD.CAD before we see a Canadian Dollar at par then US Dollar sellers really need to seriously think about doing some forward contracts and locking in some of their needs in the coming days.
Have a great day
Mike
For current market prices please contact our currency advisors or visit us online site at www.gfxpartners.ca
| Currencies | 7:00am Today's Opening | Yesterday's Opening | |||||
| USD/CAD | 1.0128 | 1.0114 | |||||
| CAD/USD | 0.9873 | 0.9887 | |||||
| EUR/USD | 1.2957 | 1.3001 | |||||
| EUR/CAD | 1.3129 | 1.3154 | |||||
| STG/CAD | 1.5785 | 1.5745 | |||||
| AUD/CAD | 1.0685 | 1.0587 | |||||
| CAD/JAP | 76.06 | 76.39 | |||||
| CAD/CHF | 0.9197 | 0.09168 | |||||
| CAD/HKD | 7.6594 | 7.6706 | |||||
| CAD/CNY | 6.2498 | 6.2585 | |||||
| Commodoties | |||||||
| Gold | 1655 | 1667 | |||||
| OIL | 98.17 | 99.12 | |||||
| Option Volatility | |||||||
| O/N | 13.34% | 12.34% | |||||
| 1 Week | 10.36% | 9.52% | |||||
| 1 Month | 10.15% | 9.62% | |||||
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