Morning,
Today's expected range for the Canadian Dollar against the US Dollar is .9920-1.0020
Today's expected range for the Canadian Dollar against the Euro is 1.3050-1.3150
Today's expected range for the Canadian Dollar against Sterling is 1.5610-1.5725
The US Dollar is weaker this morning as the Euro has jumped higher on comments from Chinese officials that they will invest in the European rescue fund and will hold onto all European assets that they own, clearly China needs to protect one of their key markets as a meltdown in Europe would have a dramatic fallout in China. EUR.USD jumped to trade at 1.3190 in spite of an EU Zone GDP report that showed the economy shrank 0.3% in the fourth quarter of 2011. This report was better than expected but still clearly indicates that the Euro-Zone is on a path to recession and the current crisis in Greece is hurting the overall economy.
On the topic of Greece, EU finance ministers today canceller their meeting and instead opted for a conference call, the meeting was cancelled because as one EU official put it, the outcome would likely have been "unsuccessful". The Greek political parties have not provided the necessary guarantees as of yet that they will keep the austerity cuts in place after any election, this Greek problem will drag out until the middle of March when they actually have to come up with the cash to pay back some bonds that are coming due.
If the Euro went up last night the Canadian Dollar must have got stronger and that is exactly what happened, USD.CAD fell back below parity and looks like it wants to test the .9950 level today. Once again I will keep my eyes on the Euro market as the Loonie will trade inversely to what the Euro does and that trading pattern will remain in place for a yet. For Today I think the first move of the day will be for USD.CAD to fall towards .9925, US Dollar buyers need to make a decision, if they feel that the Greece problem will get worse then the need to by buying some USD at these levels on a forward basis, if they believe that all is well in Europe then they should hold off as we will see better levels. If it was me I think I would be conservative and be booking some forwards on any levels below par. Short-term US Dollar sellers should look at par as the extend of any pullback today
Have a great day
Mike
GFX FOREIGN EXCHANGE MORNING UPDATE
Wednesday, February-15-12
Market Indicators * For current market prices please contact our currency advisors or visit our
on line site at www.gfxpartners.ca *
| Currencies | 7:00am Today's Opening | Yesterday's Opening | |||||
| USD/CAD | 0.9942 | 0.9984 | |||||
| CAD/USD | 1.0058 | 1.0016 | |||||
| EUR/USD | 1.316 | 1.3202 | |||||
| EUR/CAD | 1.3088 | 1.3183 | |||||
| STG/CAD | 1.5629 | 1.573 | |||||
| AUD/CAD | 1.0702 | 1.0707 | |||||
| CAD/JPY | 78.96 | 78.1 | |||||
| CAD/CHF | 0.922 | 0.9158 | |||||
| CAD/HKD | 7.7958 | 7.7635 | |||||
| CAD/CNY | 6.3332 | 6.3075 | |||||
| Commodities | |||||||
| Gold | $1,729 | $1,721 | |||||
| OIL | $101.84 | $101.52 | |||||
| Option Volatility | |||||||
| Canada | |||||||
| O/N | 11.25% | 11.59% | |||||
| 1 Week | 8.67% | 8.84% | |||||
| 1 Month | 9.14% | 9.19% | |||||
| CBOE Volatilty | |||||||
| Index (VIX) | 19.54% | 19.04 | |||||
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