GFX Morning FX Commentary April 13th, 2012

Good morning,

Today's expected range for the Canadian Dollar against the US Dollar is .9900-1.0000

Today's expected range for the Canadian Dollar against the Euro is 1.3060-1.3200

Today's expected range for the Canadian Dollar against Sterling is 1.5440-1.5575

The US Dollar is mixed this morning as increased worries of the Euro Debt crisis widening and a smaller than expected Chinese growth rate have left investors nervous. In China the first quarter growth rate came in at 8.1% when the market was expecting a rate of 8.9%, an amazing growth rate by world standards but the drop is creating concerns about global demand if China starts to slow. In Europe investors are still wary about the need for the ECB to come back to the market to buy Spanish and Italian bonds to try and keep their borrowing costs low, EURO.USD was initially sold on the London opening but has recovered a little in back and forth trading. We continue to expect the Euro to move lower in the coming weeks against the Greenback.

The Canadian Dollar had a surprisingly quiet night against the US dollar once again holding onto it strength from yesterday but moving very little. I would have expected with the poor news out of China that all commodity currencies would have been weaker today but after an initial drop the Loonie seemed to recover, it certainly looks like there are other factors at play supporting the Loonie at the moment.

With only US CPI due out today the Loonie should get their direction from the equity markets and with a down day looming on Wall Street and Bay street I would expect USD.CAD to move higher from these levels. Barring any surprises from the US inflation report USD.CAD should test back up towards .9975 but it might take all day to do it.

Have a great weekend

Mike

GFX Morning Currency Rates
Friday April 13 2012
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.994			0.9992
CAD/USD		1.006			1.0008
EUR/USD		1.6164			1.3146
EUR/CAD		1.3084			1.314
STG/CAD		1.5833			1.5947
AUD/CAD		1.0341			1.0394
CAD/JPY		81.48			80.96
CAD/CHF		0.9182			91.47
CAD/HKD		7.8079			7.7651
CAD/CNY		6.337			6.3089
CAD/MXN		13.1742			13.0956
Commodities
Gold		$1,674			$1,657
OIL		$103.26			$103.26
Option Volatility
Canada
O/N		6.88%			11.91%
1 Week		8.38%			9.15%
1 Month		8.36%			8.87%

Today's Economic Calendar

USA

CPI Report for March               08:30
Consumer Credit Report for February  15:00

CANADA

None