GFX Morning Commentary February 8th, 2012

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is .9910-1.0000

Today's expected range for the Canadian Dollar against the Euro is 1.3200-1.3300

Today's expected range for the Canadian Dollar against Sterling is 1.5770-1.5900

The US Dollar is marginally weaker this morning in very thin trading conditions and narrow ranges. The Euro reached a 2-month high against the Greenback as there is now speculation that the talks between all the political parties in Greece will come up with enough austerity measures to allow the money to flow through next month, until this deal is finalised currency markets will remain quiet as traders  will not risk a wild swing on the outcome of the talks. A positive resolution and the Euro should rally a negative resolution and EURO.USD should fall back towards 1.3000.

There is not a lot to say about the Canadian dollar as yet again it had a very narrow trading range and continues to await events to play out in Europe, yesterday saw the Loonie stage a mini-rally as the Canadian building permits came in much stronger than expected and housing prices remained strong, the average home price in Toronto is now over $600k, not much chance for young people to be buying homes in the future. Between high home prices and foreign investors the Condo market in Toronto should remain strong over the medium-term helping to keep up the demand for the Canadian Dollar.

For today everything will depend on any news out of Greece which I think we will receive at some point this afternoon, ahead of that I think the CAD market will be very quiet but the equity markets are pointing slightly higher so I think the first move for USD.CAD will be lower, if we do get a resolution to Greece today I think we will see at least .9925 trade today, once again for US Dollar sellers between .9975 and 1.0000 are good levels to leaver your orders to try and get some extra value on any US Dollar pullback.

Have a great day
Mike

GFX FOREIGN EXCHANGE MORNING UPDATE

Wednesday, February-08-12

   * For current market prices please contact our currency advisors or visit our

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Market Indicators

Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.995			0.9981
CAD/USD		1.005			1.0019
EUR/USD		1.3272			1.3114
EUR/CAD		1.3207			1.3092
STG/CAD		1.581			1.5779
AUD/CAD		1.077			1.0735
CAD/JPY		77.35			76.89
CAD/CHF		0.9167			0.9215
CAD/HKD		7.7916			7.77
CAD/CNY		6.3222			6.3134
Commodities
Gold		$1,749			$1,716
OIL		$99.54			$96.21
Option Volatility
O/N		12.14%			12.93%
1 Week		9.38%			9.88%
1 Month		9.33%			9.52%

MORNING COMMENTARY

MARKET BETTING ON A FAVOURABLE RESOLUTION TO THE GREEK RESTRUCTURING

Stock markets climbed higher in Asia on better than expected corporate earnings from Toyota.

In Europe investor sentiment is positive with stocks gaining on hopes of a favourable resolution
to the Greek debt restructuring. Also coming into focus is tomorrows ECB meeting on interest rates
which are expected to hold at the current 1%. The Euro hit a 2 month high overnight as further
unwinding of short positions ensued ahead of the Greek announcement.
The Canadian dollar is unchanged from where we closed and was held to extremely tight ranges
overnight. Dow futures are pointing higher by 20 in pre-market with commodities holding steady.
Limited economic data in North America today will have markets on the sidelines waiting for news
on a Greek resolution. In Canada this morning we have housing starts for January.

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