GFX Morning FX Commentary November 27th, 2012

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is .9880-.9950

Today's expected range for the Canadian Dollar against the Euro is 1.2800-1.2875

Today's expected range for the Canadian Dollar against Sterling is 1.5860-1.5940

Apologies for the late Commentary, GO transit was not at its finest this morning.

The US Dollar is marginally stronger this morning on reports that a Greek deal has been reached but it is a deal that appears to just delay the inevitable and has disappointed investors. The EU has cut the Greek interest rates and given them more time to pay back the debt but they did not forgive any of the massive debt, something that investors were looking for. The EU once again shows their lack of leadership in tackling a problem and just kicks the can down the road, Greece should now fall from the front pages and the focus will once again move back to Spain.

The Canadian Dollar is stronger this morning as USD.CAD looks set to test the .9900 level, there are reports coming out of China that a strong Chinese Yuan will be good for commodity currencies, so I think this small move for the Loonie is a bit of a catch up for it. Yesterday saw the announcement that Bank of Canada Governor will resign next year to take over the Bank of England, this is a great loss to Canada as Carney was one of the most respected Central Bank Governors in the world, in terms of policy and the currency markets this won’t have much short-term effect on the Loonie but long–term it should be Sterling positive.

Up today we do get some secondary US releases so if the numbers continue to be positive for the United States we could see USD.CAD break .9900 as equities will be on the rise. I would still be concerned about a violent pullback towards parity for USD.CAD so these are good levels for US Dollar buyers to pick up some forward contracts.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9921			0.9929
CAD/USD		1.0079			1.0071
EUR/USD		1.2979			1.2968
EUR/CAD		1.2847			1.2881
STG/CAD		1.5897			1.5914
AUD/CAD		1.0395			1.0375
CAD/JPY		82.67			82.64
CAD/CHF		0.9369			0.9348
CAD/HKD		7.7902			7.7824
CAD/CNY		6.2687			6.2668
CAD/MXN		13.102			13.0683
Commodities
Gold		$88			$1,749
OIL		$1,747.00			$87.94
Option Volatility
Canada
O/N		6.94%			7.17%
1 Week		4.84%			5.18%
1 Month		5.06%			5.09%