Today’s
expected range for the Canadian Dollar against the US Dollar is .9950-1.0050
Today’s
expected range for the Canadian Dollar against the Euro is 1.2870-1.2970
Today’s
expected range for the Canadian Dollar against Sterling is 1.6020-1.6120
The
US Dollar is stronger this morning as negative news continues to come out of
Europe and more evidence that the current crisis is weighing on the overall health
of the Euro economy. Amid reports of Spanish Retail Sales dropping 11% year
over year Italian Prime Minister Monti met with Spain’s Prime Minister Rajoy this
morning to try and convince him to apply for a full bailout, the Spanish
economy it appears to me is in a free fall and investors are going to keep
punishing the Euro until Spain makes it application, the sooner they do it the
better it will be for Europe.
The
Canadian Dollar is weaker this morning on the back of the stronger US Dollar and
now USD.CAD looks set to test above parity at some point. I am not quite sure what
effect Hurricane Sandy is going to have on the markets today, with New York
shut down most banks will move to their disaster recovery sites or have other international
branches remain open to cover off the trading day, my guess is that with the
NYSE closed FX trading will be light as equities have been the driver for the
currency markets. Commodity markets should be unaffected as they are for the
most part traded out of the CME in Chicago, I don’t think the storm will have
much effect on the price of commodities as there won’t be any major gas or oil
fields in the path of the storm. If any East Coast refining capacity is
extensively damaged then you may see oil and gasoline futures jump.
Everything
being equal I look for a reduced volume day and a test of USD .CAD to move
above parity at some point.
Have
a great week and make sure you have emergency supplies at home, with the amount
of rain and wind we are expecting I am sure we will have power losses along the
way.
Mike
| GFX Morning Currency Rates | |||||||
| Currencies | 7:00am Today's Opening | Yesterday's Opening | |||||
| USD/CAD | 0.9991 | 0.9969 | |||||
| CAD/USD | 1.0009 | 1.0031 | |||||
| EUR/USD | 1.2984 | 1.2893 | |||||
| EUR/CAD | 1.2894 | 1.2854 | |||||
| STG/CAD | 1.6045 | 1.6055 | |||||
| AUD/CAD | 1.0323 | 1.0292 | |||||
| CAD/JPY | 79.34 | 79.99 | |||||
| CAD/CHF | 0.9372 | 0.9403 | |||||
| CAD/HKD | 7.7349 | 7.7514 | |||||
| CAD/CNY | 6.246 | 6.2656 | |||||
| CAD/MXN | 13.0815 | 13.1383 | |||||
| Commodities | |||||||
| Gold | $1,712 | $1,703 | |||||
| OIL | $85.87 | $86.00 | |||||
| Option Volatility | |||||||
| Canada | |||||||
| O/N | 10.00% | 7.03% | |||||
| 1 Week | 7.49% | 7.70% | |||||
| 1 Month | 6.95% | 6.97% | |||||
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