GFX Currency Commentary: GFX Morning Commentary February 13, 2013

Good Morning

Today’s suggested range for the Canadian dollar against the US Dollar 1.0010 – 1.0060

Today’s suggested range for the Canadian dollar against the Euro 1.3475 – 1.3575

Today’s suggested range for the Canadian dollar against Sterling is 1.5575 – 1.5675

The British Pound had a steep drop following the Bank of England Inflation Report.

The report suggests that risks to the U.K. economy are still weighed down and they

see inflation above 2% until 2016. The European single currency gained at the expense

of the British Pound as strong buying of EUR/GBP ensued. The Japanese Yen is basically

unchanged against the US Dollar from where we closed, but conflicting messages from the

the G-7 on how much of an economic threat a weakening Yen poses is keeping the markets

nervous.

The Canadian dollar remains range bound against the US Dollar as cross activity is dominating

trading. I still favour a stronger Canadian dollar against the greenback as the mega oil merger

between Cnooc Ltd.(The Chinese state run company) and Nexen is approved to close Feb 25

which is priced in US Dollars with Canadian investors owning 28% translating to 4 billion USD.

Even if only half the amount is converted back to Canadian investors it remains a substantial

amount.

Today the economic focus is on U.S. retail sales out at 8:30am with expectations of a 0.1% rise

down from the previous 0.5%. No Canadian economic releases are due out today. The Dow

futures are pointing higher by 20 with little change in the price of gold and oil.

Have a great day!

Rich

Wednesday 13 February 2013