GFX Currency Commentary: GFX Morning Commentary February 14th, 2013

Thursday 14 February 2013

Good Morning

Today’s suggested range for the Canadian dollar against the USD Dollar is .9980 – 1.0030

Today’s suggested range for the Canadian dollar against the Euro is 1.3300 – 1.3400

Today’s suggested range for the Canadian dollar against Sterling is 1.5500 – 1.5600

The Euro plunged more than a big figure against the greenback overnight following

worse than expected GDP growth. The recession has deepened in the Eurozone as

GDP y/y fell 0.9% from the previous -0.6%. The EUR/USD slid to a three week low

as a stronger Euro is viewed as counterproductive to growth prospects. The European

stocks have been hit hard with most indexes down over one percent. The upcoming

G-20 meeting will be urged to address currency manipulation as domestic policies

are failing to promote growth. Elsewhere overnight some positive news in NZ with

manufacturing expanding from the previous month putting future interest rate cuts

on hold.

The Canadian dollar was pretty much sidelined overnight with all the activity

centered around the Euro. The scenario unfolding looks like going long North America

short Europe at the moment. The Dow futures are lower by 60 in pre-market trading

following the weakness in Europe. Oil is only marginally lower which is a bit of a

surprise given Europe is in a deeper recession, while gold is holding steady in

nervous markets. The only North American economic release today is U.S. jobless

claims at 8:30am.

Have a great day!

Rich

Thursday 14 February 2013