GFX Morning FX Commentary Nov 19th, 2012

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is .9960-1.0040

Today’s expected range for the Canadian Dollar against the Euro is 1.2720-1.2800

Today’s expected range for the Canadian Dollar against Sterling is 1.5850-1.5925

The US Dollar is marginally weaker as optimism from Obama’s comments that a budget deal can be reached have pushed the Greenback lower, EURO.USD rose to trade at a  high of 1.2785. There are still many clouds on the horizon not the least of which is the Middle East situation. Talks are under way in Cairo for a cease fire, if they fail and Israel pushes ground troops into the Gaza financial markets will get very nervous about other countries sympathetic to the Palestinians getting involved.

The Canadian Dollar was able to benefit from the higher Oil and Gold prices overnight and started a move back below parity. Given the uncertainty in the marketplace at the moment it might not be a bad idea for US Dollar buyers to put some orders in at .9975 and try and pick up some cheap USD. If the Middle East blows up or the Euro crisis raises its head again USD.CAD could quickly be back up testing 1.0050. With North American markets poised to break out higher this morning I would not be surprised to see USD.CAD test the lower end of our range early on.

Just a quick reminder that Thursday is the US Thanksgiving holiday, we will be open but equity and bond markets will be closed in the States. If you need to send out some USD keep that in mind, markets will wind down Wednesday afternoon.

Have a great week

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9983			1.0019
CAD/USD		1.0017			0.9981
EUR/USD		1.2774			1.2731
EUR/CAD		1.2754			1.2756
STG/CAD		1.5882			1.588
AUD/CAD		1.0377			1.0331
CAD/JPY		81.02			80.78
CAD/CHF		0.9444			0.9439
CAD/HKD		7.7431			7.7164
CAD/CNY		6.2407			6.2207
CAD/MXN		13.11			13.2238
Commodities
Gold		$1,724			$1,709
OIL		$88.00			$85.49
Option Volatility
Canada
O/N		7.38%			5.22%
1 Week		5.29%			5.57%
1 Month		5.88%			5.99%