GFX Morning FX Commentary, June 5th, 2012

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0360-1.0500

Today's expected range for the Canadian Dollar against the Euro is 1.2910-1.3050

Today's expected range for the Canadian Dollar against Sterling is 1.5950-1.6075

The US Dollar is marginally stronger this morning in quiet trading conditions as the Jubilee holiday in the UK continues to keep markets subdued. Overnight the Euro gave back some gains as the Spanish Budget Minister called for EU money to prop up the Spanish banking system and German Factory Orders fell in the month of April. Every time the Euro seems to push ahead along comes more bad news and it gets hit again, right now with the current situation I just can't envision a situation where the Euro maintains any prolonged strength.

The Canadian Dollar had an up and down night and once again looks like it wants to try and break above the 1.0400 level. Trading today will of course be dominated by the Bank of Canada interest rate announcement and policy statement, I will send out a currency alert shortly after the announcement but if the statement indicates an interest rate hike sooner than later then USD.CAD will fall sharply. A more likely scenario is that the Bank will indicate they are concerned with a global slowdown and will take a wait and see attitude holding interest rates where they are for the foreseeable future,  in which case USD.CAD should jump higher.

Have a great day

Mike

GFX Morning Currency Rates
Monday June 04, 2012
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0413			1.0383
CAD/USD		0.9602			0.9631
EUR/USD		1.2416			1.2436
EUR/CAD		1.2932			1.2916
STG/CAD		1.5972			1.5976
AUD/CAD		1.0119			1.0074
CAD/JPY		75.1			75.18
CAD/CHF		0.9284			0.9291
CAD/HKD		7.7551			7.4677
CAD/CNY		6.1145			6.1264
CAD/MXN		13.7125			13.7225
Commodities
Gold		1,619.50			$1,625
OIL		$83.65			$82.32
Option Volatility
Canada
O/N		14.48%			14.53%
1 Week		11.91%			12.01%
1 Month		11.76%			11.68%

Today's Economic Calendar

USA
ISM non-Manufacturing Index for May (10:00)

CANADA
Building Permits for April (08:30)
Bank of Canada Policy Announcement (9:00)