GFX Morning Commentary, February 11, 2013

Good Morning

 

Today’s suggested range for the Canadian dollar against the US Dollar is 1.0025 – 1.0100

 

Today’s suggested range for the Canadian dollar against the Euro is 1.3470 – 1.3570

 

Today’s suggested range for the Canadian dollar against Sterling is 1.5760 – 1.5860

 

The US Dollar is stronger against most major currencies from overnight trading. The Japanese Yen has come under renewed attack as Japanese policy makers continue to hint towards more stimulus that should undermine the currency. The Bank of Japan is scheduled  to make its interest rate decision on Wednesday.  The currency war debate lingers with many countries trying to devalue in hopes of getting a  competitive edge.  The G-7 is looking to release a statement on exchange rates prior to the G-20 meeting in Moscow Feb 15-16.

 

The Canadian dollar extended its loses against its U.S. counterpart  from Friday. The disappointing employment Report in Canada showing a drop of 21.9 k jobs in January  comes after two consecutive months of robust growth.  The employment figures are extremely volatile and I would want to see another release before we hit the panic button on the health of the Canadian economy. The Canadian dollar post-employment data has failed to get back above parity against the US Dollar and if its fortunes don’t improve against the crosses it may be difficult this week with literally no Canadian economic releases. Canadian exporters should continue to sell USD/CAD on rallies with
next major resistance at 1.0100.

 

No major economic news out of North America today with the Dow futures pointing up by 30 with both Oil and gold marginally lower.

 

Have a great day!

GFX Morning Currency Rates
Monday February 11, 2013
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0071			0.9973
CAD/USD		0.9929			1.0027
EUR/USD		1.3379			1.341
EUR/CAD		1.3477			1.3376
STG/CAD		1.58			1.5724
AUD/CAD		1.0338			1.0312
CAD/JPY		92.67			95.69
CAD/CHF		0.9114			0.9187
CAD/HKD		7.6791			7.7941
CAD/CNY		6.186			6.2475
CAD/MXN		12.7128			12.7296
Commodities
Gold		$1,667			$1,672
OIL		$95.37			$96.29
Option Volatility
Canada
O/N		5.75%			5.98%
1 Week		5.50%			5.94%
1 Month		5.50%			5.83%

 

 

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