Today’s
expected range for the Canadian Dollar against the US Dollar is .9975-1.0050
Today’s
expected range for the Canadian Dollar against the Euro is 1.2925-1.3000
Today’s
expected range for the Canadian Dollar against Sterling is 1.6040-1.6120
The US Dollar is marginally stronger this morning as the big news overnight was the announcement by the Bank of Japan that they will make another round of asset purchases to increase their quantative program (11 trillion Yen worth of assets). The Japanese export market is being hurt by a very strong yen so this program is expected to boost the economy and weaken the Yen but last night it had the opposite effect as investors felt the amount was too small to make a material difference to the economy. In a Bloomberg report this morning the head of Nissan motors said that if the Yen does not weaken back to 100 against the USD then his company would have to look at leaving Japan, if one company is thinking this then you know that many more are as well. It is probably an idle threat but the problem for the Japanese economy is huge and the Government is having a tough time at the moment.
The
Canadian Dollar is unchanged from yesterday where we had one of the quietest
trading days in a long time, the Loonie more than any other currency is being
affect by the decreased trading activity caused by Hurricane Sandy. Last night
saw both the Aussie and Kiwi Dollars rise by 0.5% and the Canadian Dollar did
nothing which is unusual, clearly the Loonie is lagging behind and we may see
it play catch up today with USD.CAD moving a bit lower.
Today’s
trading will of course be again dominated by Sandy, there are reports that the
NYSE is under 3 feet of water so it may be days before trading gets back to
normal, I am hoping that they have a disaster
recovery site that they can use in the short-term while repairs are made but I am
not sure. All the other exchanges are electronic so they should have backup
sites that they can roll out.
We
do have some secondary US and Canadian data due out today so we may get some
enhanced activity around these releases but for the most part today I would
expect a subdued trading day with possibly the Loonie playing a little catch up
to other commodity currencies and USD.CAD moving slightly lower.
I
am going to try an new email service tomorrow, it is called GetResponse and you
will receive an email asking if you want to receive the commentary, if you do
want to get it you will need to reply to that email. Too many emails are not
getting through to people that what to receive them on this present site. If
you do not get the commentary tomorrow please let me know at msmith@gfspartners.ca and I will
investigate.
Have
a great day
Mike
GFX
Morning Currency Rates
|
|||||||
| Currencies | 7:00am Today's Opening | Yesterday's Opening | |||||
| USD/CAD | 1.0003 | 0.9991 | |||||
| CAD/USD | 0.9997 | 1.0009 | |||||
| EUR/USD | 1.2952 | 1.2984 | |||||
| EUR/CAD | 1.2957 | 1.2894 | |||||
| STG/CAD | 1.6065 | 1.6045 | |||||
| AUD/CAD | 1.035 | 1.0323 | |||||
| CAD/JPY | 79.11 | 79.34 | |||||
| CAD/CHF | 0.9322 | 0.9372 | |||||
| CAD/HKD | 7.7255 | 7.7349 | |||||
| CAD/CNY | 6.241 | 6.246 | |||||
| CAD/MXN | 13.0726 | 13.0815 | |||||
| Commodities | |||||||
| Gold | $1,711 | $1,712 | |||||
| OIL | $85.54 | $85.87 | |||||
| Option Volatility | |||||||
| Canada | |||||||
| O/N | 9.58% | 10.00% | |||||
| 1 Week | 7.23% | 7.49% | |||||
| 1 Month | 7.00% | 6.95% | |||||
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