GFX Morning Commentary April 30th, 2013

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0080-1.0160

Today's expected range for the Canadian Dollar against the Euro is 1.3210-1.3300

Today's expected range for the Canadian Dollar against Sterling is1.5640-1.5720

The US Dollar is marginally stronger this morning as further poor data out of Europe have again indicated the common market is having a tough time pulling out of recession which in turn looks like it will force the ECB to cut interest rates later this week. I was sent an article from the Financial Times (Ireland: Bleak Houses if you want to Google it) this morning by a good friend in London that shows the Troika (EU, IMF and the ECB) as part of their loan package are forcing the Irish Government to follow up with their commercial banks to start foreclosing on any properties in Ireland that are in arrears. This program has the ability to put thousands of families out on the street and surely cause massive social unrest in Ireland and eventually throughout the rest of Europe, the lack of leadership in Europe continues to weigh on this crisis and I just don’t see any resolve to the situation in the near future.

The Canadian Dollar continues to slowly gain some strength in overnight markets as USD.CAD dropped a little lower last night. The Loonie continues to be quite resilient but again, with so much uncertainty in global financial markets it makes me wonder just how strong the Loonie can get, if I was a US Dollar buyer I would be looking at doing some forward contracts at these levels.

Up today to close out the month we have some secondary data out of the US and the Canadian GDP report for February, we are expecting a monthly growth rate of 0.2% which equates to a year-over-year growth rate of 1.3%. If the number comes in worse than expectation then we will see USD.CAD jump higher, barring any surprises we should see the Loonie continue to strengthen.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0111			1.0144
CAD/USD		0.989			0.9858
EUR/USD		1.3072			1.308
EUR/CAD		1.3221			1.327
STG/CAD		1.5685			1.5747
AUD/CAD		1.046			1.0483
CAD/JPY		96.4			96.5
CAD/CHF		0.9254			0.9257
CAD/HKD		7.6543			7.6297
CAD/CNY		6.0951			6.0258
CAD/MXN		12.0702			11.9462
Commodities
Gold		$1,472.00			$1,470.00
OIL		$94.39			$93.40
US DOLLAR INDEX
P.CLOSE		82.16			82.57
OPEN		82.26			82.25