GFX Morning FX Commentary July 10th, 2012

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0125-1.0225

Today's expected range for the Canadian Dollar against the Euro is 1.2500-1.2600

Today's expected range for the Canadian Dollar against Sterling is 1.5760-1.5860

The US Dollar is marginally weaker this morning in quiet overnight trading conditions. Equity markets are slightly higher on the news that the EU rescue fund will make available 30 Billion Euro to Spanish banks by the end of the month and have increased the amount of time that Spain has to reach it deficit targets. Any real surge in the Euro and equities was tempered by economic data that showed industrial output slowed in France last month and imports and exports in China both fell, clear signs the world economy is slowing.

With the weaker US dollar overnight the Canadian Dollar was able to gain a little strength but nothing material, for now USD.CAD looks like it wants to move a touch lower but much like yesterday we probably won't see an active range. The Loonie continues to outperform against the Euro and Sterling and looks to hold onto that strength for a while yet.

Up today we get some Canadian housing data but it will be a while before the housing numbers reflect the new mortgage rules that went into effect yesterday so I don’t think the currency markets will watch them all that much just yet. With North American markets looking to start the day in positive territory we should see the Loonie  maintain a positive tone.

Have a great day

Mike

GFX Morning Currency Rates
Tuesday July 10th, 2012
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0169			1.0192
CAD/USD		0.9834			0.9811
EUR/USD		1.2312			1.2308
EUR/CAD		1.2520			1.2308
STG/CAD		1.5795			1.5491
AUD/CAD		1.0410			1.0279
CAD/JPY		78.1200			78.00
CAD/CHF		0.9588			0.957
CAD/HKD		7.7540			7.6034
CAD/CNY		6.3668			6.3723
CAD/MXN		13.0399			13.174
Commodities
Gold		$1,593.50			$1,585
OIL		$85.06			$84.79
Option Volatility
Canada
O/N		0.1161			12.40%
1 Week		0.0881			9.12%
1 Month		0.0842			8.83%

Today's Economic Calendar

USA
None

CANADA
Housing Starts for June (08:15)