GFX Morning FX Commentary, March 7th, 2012

Good Morning,

Today’s suggested range for the Canadian dollar against the US Dollar is .9950 – 1.0050.

Today’s suggested range for the Canadian dollar against the Euro is 1.3120-1.3250

Today’s suggested range for the Canadian dollar against Sterling is 1.5720-1.5850

The US Dollar is slightly weaker this morning as the Euro has rebounded back above 1.3150 against the Greenback, investors are becoming more confident that the Greek private debt swap will proceed this week without issue, the Greek Government said they need a 75% volunteer participation rate before they would force it through and it looks now like they will get it, once this swap is completed the Euro should stabilize for a while unless of course another county comes front and centre.

The markets should remain subdued today as Central Bank announcements tomorrow will dominate the headlines, the big question is whether the ECB (European Central Bank) and the BOE (Bank of England) announce further stimulus measures for their respective economies, both countries are expected to keep interest rates where they presently are.

The Canadian Dollar had a very quiet overnight session as it once again trades near parity. I would have thought that the Loonie would have held onto its recent strength a little better but it was not to be, it just shows how fast trends can change in the currency world and forward contracts are tools most of our clients should be using

With the Bank of Canada announcement set for tomorrow morning I would not expect much of a USD.CAD trading range, we do have the release of the February US ADP Employment and Canadian Building Permits scheduled to be released but I would not expect these numbers to have a dramatic impact on the currency markets, the ADP report is watched by trades but as we have seen in the past it rarely has much correlation to the actual Department of Labour report. If you need to do a transaction in the near future then I suggest you do it before tomorrow's 9:00 am announcement as while I don't expect and policy change if they do make any impacting economic statements the currency could be very different after the announcement.

For today it is really a quite simple strategy,  US Dollar buyers should look for any opportunities below par and US Dollar sellers should jump in when USD.CAD breaks above par.

Have a great day

Mike

GFX FOREIGN EXCHANGE MORNING UPDATE

Wednesday, March-07-12

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		1.0008			0.9993
CAD/USD		0.9092			1.0007
EUR/USD		1.3131			1.3133
EUR/CAD		1.3144			1.3126
STG/CAD		1.5739			1.5761
AUD/CAD		1.0578			1.0585
CAD/JPY		80.62			81.03
CAD/CHF		0.9166			0.9181
CAD/HKD		7.7544			7.7662
CAD/CNY		6.3016			6.309
Commodities
Gold		$1,681			$1,687
OIL		$105.31			$106.11
Option Volatility
Canada
O/N		12.99%			11.84%
1 Week		10.08%			9.16%
1 Month		9.42%			8.83%