GFX Morning Commentary February 12th, 2013

Good Morning

 

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

 

Today’s suggested range for the Canadian dollar against the Euro is 1.3480 – 1.3580

 

Today’s suggested range for the Canadian dollar against Sterling is 1.5675 – 1.5775

 

Trading from overnight still has the Japanese Yen weaker along with  the British Pound with the Euro gaining in the crosses, while the commodity based currencies remain range bound. The G-7 statement has pledged they will not use currency devaluation as a tool for stronger economic growth. Also the G-7 states that Japan isn’t targeting exchange rates with its monetary policy (believe what you want).  Whether the motive of some countries is in fact to devalue as long as the process is orderly central banks will not normally intervene. The British Pound has fallen to a six month low against the greenback as traders position themselves ahead of a Bank of England report tomorrow which could revise the growth outlook.

 The Canadian dollar was confined to narrow ranges overnight and remains below parity against its  U.S. counterpart. Canadian exporters are still looking to sell USD/CAD at and above the 1.0100 level which should provide strong resistance. The lack of important Canadian economic data this  week should keep the currency oscillating between parity and 1.0100.

 Today the economic calendar is bare in North America with Fed speakers highlighting the activity.

The Dow futures are slightly below the flat line and gold has so far shown no bounce from yesterday’s selloff, while oil has edged higher in early trading.

 

Have a great day!

 

Rich

 

GFX Morning Currency Rates
Tuesday February 12, 2013
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0069			1.0071
CAD/USD		0.9931			0.9929
EUR/USD		1.3447			1.3379
EUR/CAD		1.3541			1.3477
STG/CAD		1.5716			1.58
AUD/CAD		1.0326			1.0338
CAD/JPY		0.9351			92.67
CAD/CHF		0.9104			0.9114
CAD/HKD		7.6814			7.6791
CAD/CNY		6.1877			6.186
CAD/MXN		12.677			12.7128
Commodities
Gold		$1,646			$1,667
OIL		$97.29			$95.37
Option Volatility
Canada
O/N		7.00%			5.75%
1 Week		6.59%			5.50%
1 Month		6.13%			5.50%