Today’s
expected range for the Canadian Dollar against the US Dollar is .9925-1.0050
Today’s
expected range for the Canadian Dollar against the Euro is 1.3150-1.3250
Today’s
expected range for the Canadian Dollar against Sterling is 1.5740-1.5875
The US
Dollar is mixed to start the shortened trading week as it was weaker yesterday
and improved overnight. Yesterday saw agreement from the EU that they would indeed
provide the necessary financing to Greece so they can avoid default in March,
on this news European equity markets all jumped higher and EURO.USD jumped back
above the 1.3200 level. In the overnight session the Euro gave back some of
those gains as investors are not willing to bet on a European recovery solely
on the fact that the Greek situation has been resolved, there are still other
dark clouds on the horizon and just like
the Dutch boy that plugged the hole in the dike, I am sure another hole will
pop up that will require another few billion Euro to solve. I still can’t
envision a situation where the Euro will be able to hold onto prolonged
strength.
The Canadian
Dollar had a busy day yesterday and a subdued overnight session , with the jump
in the Euro yesterday USD.CAD fell lower and we were able to execute some
excellent US Dollar buys for clients that left orders over the weekend, this morning
USD.CAD moved back higher as the currency pair continues to trade in correlation
to the Euro, the Canadian Dollar is being ignored by the currency markets at
the moment and it should continue to trade back and forth around 1.0000 for a
while yet. IF EURO.USD does break higher then USD.CAD will trade below .9900
and if EURO.USD stops rising and moves back towards 1.3000 then USD.CAD will be
back above par. Overall I still favour a stronger Canadian dollar but as we
have seen lately any further strength will be gradual.
We do get
Canadian Retail Sales report for December today but I doubt it will have a big
impact on the currency market, we are expecting an reduction of 0.3% in sales so
further signs that the Canadian economy is slowing continue to hit the market.
The Loonie did get a bit of a boost yesterday when the price of oil jumped on reports
that Iran was suspending oil shipments to Britain and France, I get a sense
that slowly over the course of this year the geo-political situation in Iran will
get worse and worse and will be a situation that will affect all the currency
markets, if you do see the price of oil
jump higher in the coming days look for it to help USD.CAD fall below
.9900.
Have a
great week
Mike
online site at www.gfxpartners.ca *
GFX FOREIGN EXCHANGE MORNING UPDATE
Tuesday February 21st, 2012
* For current market prices please contact our currency advisors or visit ouronline site at www.gfxpartners.ca *
| Currencies | 7:00am Today's Opening | Yesterday's Opening | |||||
| USD/CAD | 0.997 | 0.996 | |||||
| CAD/USD | 1.003 | 1.004 | |||||
| EUR/USD | 1.32 | 1.3132 | |||||
| EUR/CAD | 1.3163 | 1.308 | |||||
| STG/CAD | 1.5753 | 1.5766 | |||||
| AUD/CAD | 1.0629 | 1.0709 | |||||
| CAD/JPY | 79.82 | 79.39 | |||||
| CAD/CHF | 0.9165 | 0.9228 | |||||
| CAD/HKD | 7.7786 | 7.7836 | |||||
| CAD/CNY | 6.3119 | 6.3182 | |||||
| Commodities | |||||||
| Gold | $1,740 | $1,731 | |||||
| OIL | $104.36 | $102.60 | |||||
| Option Volatility | |||||||
| Canada | |||||||
| O/N | 11.80% | 7.58% | |||||
| 1 Week | 8.99% | 9.04% | |||||
| 1 Month | 9.22% | 9.46% | |||||
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