GFX Morning FX Commentary Nov 1st, 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 1.2930-1.3030

Today’s expected range for the Canadian Dollar against Sterling is 1.6140-1.6220

The US Dollar is marginally stronger overnight in quiet FX markets. EURO.USD has slipped back below 1.3000 as poor economic growth numbers released from Norway and Sweden have increased investor concern that the overall Europe economy is slowing as a result of the financial crisis. In the US the accountants will be hard at work to determine the cost to the US Gross Domestic Product report of Hurricane Sandy, early reports put the damage at 20-50 Billion dollars, initially the economy will take a hit but once rebuilding starts then the economy will get a boost, nothing like a war or natural disaster to boost your economy.

Canadian Dollar movement continues to be a non-event as USD.CAD hovers near parity and does not want to break out to either side. Up today we do get a load of US economic reports and the expectation is that we could start to see a slowdown in manufacturing in the US which would be equity negative and US Dollar positive, if the numbers are well below expectation then we could see USD.CAD try and break above 1.0050 today.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0002			0.9967
CAD/USD		0.9998			1.0033
EUR/USD		1.2943			1.3005
EUR/CAD		1.2948			1.2964
STG/CAD		1.6174			1.6062
AUD/CAD		1.0354			1.0334
CAD/JPY		79.95			79.83
CAD/CHF		0.932			0.9314
CAD/HKD		7.7247			7.753
CAD/CNY		6.2416			6.2574
CAD/MXN		13.0916			13.0826
Commodities
Gold		$1,723			$1,719
OIL		$86.42			$86.32
Option Volatility
Canada
O/N		10.02%			9.27%
1 Week		7.54%			7.19%
1 Month		6.59%			6.65%