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 1.3075-1.3100
Today's
expected range for the Canadian Dollar against Sterling is 1.5780-1.5900
The
US Dollar is stronger this morning as European markets react to the news that
Spain did not do so well at today's debt auction, the demand to hold Spanish
Government debt at current interest rates seems to be waning and will require
Spain either to raise the rates they will pay investors or they will go to the
ECB for a hand-out, either way the Euro debt crisis is not going anywhere soon.
EURO.USD fell to trade at 1.3150 in early trading and looks like it wants to
continue in that direction. The Euro was also helped lower on poorer than
expected retail sales in the region so overall not a good day to be in Europe.
The
Euro decline started yesterday on the release of the Federal Reserve minutes that
reveled the Fed is starting to think about raising interest rates and preparing
markets for that eventuality. In the statement the Fed hinted that if US economic
growth takes off then they will abandon their plan to keep interest rates low
until 2014, it looks like the recent round of good news out of the US economy
is getting the attention of the Federal Reserve Bank and we could see higher
interest rates in the US sooner than later.
This
morning the ECB announced that they were keeping interest rates at 1.0% and the
markets will now await Governor Draghi's press conference, the markets will be
watching the comments made by Draghi on the Euro economy and the debt crisis
and in particular any comments on the Spanish situation will be watched
closely.
With
the overnight strength in the US Dollar the Loonie gave back some gains and
USD.CAD traded back towards .9950, unfortunately it is still trading in narrow
ranges and is not very exciting at the moment. Tomorrow may provide some
volatility for the Loonie as we get the Canadian jobs report, we are expecting 10K
new jobs (last month the economy lost 2.8k) to have been created and the
unemployment rate to remain at 7.4%.
With
the overnight weakness in the Euro and Sterling the Loonie has been able to
extend some gains against both of those currencies, EURO.CAD looks like it
wants to test below the 1.3150 level and GBP.CAD in under pressure as well
looking to break below the 1.5800 level, if the press conference disappoints
this morning both of these currency pairs should move lower.
Barring
any surprises out of the interest rate announcement in Europe USD.CAD should
have a narrow trading range today, with equity markets pointing considerably lower
to start the day my expectation would be for USD.CAD to test higher.
Have
a great day
Mike
GFX
Morning Currency Rates
|
|||||||
Wednesday April 04
2012
|
|||||||
| Currencies | 7:00am Today's Opening | Yesterday's Opening | |||||
| USD/CAD | 0.9935 | 0.9918 | |||||
| CAD/USD | 1.0065 | 1.0083 | |||||
| EUR/USD | 1.3167 | 1.3336 | |||||
| EUR/CAD | 1.3084 | 1.3229 | |||||
| STG/CAD | 1.5772 | 1.5873 | |||||
| AUD/CAD | 1.0201 | 1.0285 | |||||
| CAD/JPY | 82.78 | 82.66 | |||||
| CAD/CHF | 0.9195 | 0.9094 | |||||
| CAD/HKD | 7.8143 | 7.8265 | |||||
| CAD/CNY | 6.3355 | 6.3464 | |||||
| CAD/MXN | 12.9132 | 12.8683 | |||||
| Commodities | |||||||
| Gold | $1,633 | $1,678 | |||||
| OIL | $103.36 | $104.42 | |||||
| Option Volatility | |||||||
| Canada | |||||||
| O/N | 10.18% | 9.85% | |||||
| 1 Week | 7.83% | 7.56% | |||||
| 1 Month | 8.25% | 8.27% | |||||
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