GFX Morning FX Commentary, April 19th, 2012

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is .9860-.9960

Today’s expected range for the Canadian Dollar against the Euro is 1.2960-1.3060

Today’s expected range for the Canadian Dollar against Sterling is 1.5870-1.6000

The US Dollar is marginally stronger this morning after spending most of the overnight session trading weaker. In Europe,  the Euro initially received a bit of a boost as the Spanish Bond Auction went very well despite the Spaniards having to pay slightly higher interest rates to get what they needed. This morning the North American futures took a nose dive as US Financial giant Morgan Stanley posted a net loss for the last quarter, spooking investors, the initial drop in Dow Jones futures gave the US dollar a boost and EURO.USD fell to trade at 1.3070. It now looks like the loss posted by Morgan Stanley was an accounting loss and not from operations so I would expect that that Wall Street will have a positive opening and the Euro may recover a bit.

The Canadian Dollar continues to trade back and forth around the .9900 level in narrow trading conditions as the Loonie looks to settle into a new trading range. Up today we do have some secondary data out of the US which is again expected to be positive so look for the equity markets to push higher and USD.CAD should continue to trade near the .9900 level, US Dollar sellers should leave their orders between .9925 to .9950 to give themselves the best chance of getting filled today and we still think US Dollar buyers should be looking at forward contracts on moves below the .9900 level.

Have a great day

Mike

GFX Morning Currency Rates
Thursday, April 19 2012
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9895			0.99
CAD/USD		1.0106			1.01
EUR/USD		1.3114			1.3077
EUR/CAD		1.2979			1.2944
STG/CAD		1.5865			1.5824
AUD/CAD		1.0254			1.0268
CAD/JPY		82.51			82.26
CAD/CHF		0.9255			0.9283
CAD/HKD		7.8404			7.8403
CAD/CNY		6.3672			6.3633
CAD/MXN		13.3382			13.263
Commodities
Gold		$1,641			$1,647
OIL		$102.89			$104.17
Option Volatility
Canada
O/N		11.49%			11.52%
1 Week		8.78%			8.68%
1 Month		8.47%			8.53%

Today's Economic Calendar

USA
Existing Home Sales for March (10:00)
Leading Indicators for March (10:00)
Piladelphia Fed Index for April (10:00)

CANADA
None