GFX Morning Commentary December 19th, 2012

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is .9825-.9900

Today’s expected range for the Canadian Dollar against the Euro is 1.3075-1.3150

Today’s expected range for the Canadian Dollar against Sterling is 1.6040-1.6120

The US Dollar is weaker again this morning as the Euro is on a roll at the moment, EURO.USD reached a new 7 month high this morning of 1.3290. The Euro is being pushed higher by a number of factors, the Fiscal Cliff negotiations seem to be gaining momentum, S&P upgraded the Greek debt rating so hopefully that issue is being pushed to the back ground for now, the Euro keeps gaining against the Yen as that country will rapidly seek to devalue their currency through new stimulus measures and this morning the German business confidence report came in better than expected, all positive factors for the Euro. I am still not convinced that this can be maintained in the long run especially as a strong Euro will hurt their export market but for the short-term the Euro should remain strong.

The Canadian Dollar continues to remain stable against the US Dollar, with the Euro on the rise against the Canadian Dollar as well as the US Dollar, the Lonnie has not been able to make any gains against the Greenback so USD.CAD just sits at current levels waiting for its next move. We do get some secondary economic data out of the US today but I don’t expect it to have much of an impact on the currency, tomorrow we do get the release of the US GDP report  as well as Canadian Retail Sales and that may get the market moving ahead of the holiday break.

This will be the last commentary before Christmas, I am taking a couple of days off to get Mrs. Smith her Christmas present, I was thinking a vacuum cleaner that really sucks would be a nice gift but my inner man tells me that I might end up with the hose wrapped around my neck Christmas morning, I think I better pay a visit to the local jewelry store. I will be in the office on Christmas Eve and the rest of the working days next week, I won’t do a daily commentary but will send out some thoughts on the year that was and hopefully some insight for next year to help with your budgeting process.

Have a great holiday
Mike

 

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.985			0.9846
CAD/USD		1.015			1.0154
EUR/USD		1.3278			1.3178
EUR/CAD		1.308			1.2977
STG/CAD		1.6055			1.5455
AUD/CAD		1.0346			1.0368
CAD/JPY		85.77			85.13
CAD/CHF		0.9242			0.9303
CAD/HKD		7.8623			7.8659
CAD/CNY		6.3225			6.3261
CAD/MXN		12.9023			12.9255
Commodities
Gold		$1,670			$1,699
OIL		$88.40			$87.71
Option Volatility
Canada
O/N		6.40%			6.50%
1 Week		5.10%			5.12%
1 Month		5.02%			5.05%