GFX Morning Commentary April 5th, 2013

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0090-1.0165

Today’s expected range for the Canadian Dollar against the Euro is 1.3080-1.3150

Today’s expected range for the Canadian Dollar against Sterling is 1.5410-1.5480

The US Dollar is unchanged this morning as currency traders await the release of the US employment report for March, the Euro traded in a very narrow range last night after a very volatile session yesterday. EURO.USD and EURO.CAD had a wild ride yesterday, at one point EURO.USD dropped over 100 points shortly after ECB Governor Draghi’s press conference started and then later in the morning it recovered to trade back above where it opened. This was all on comments by Draghi that stated the ECB saw the chances of a slowdown later in the year and that the Cyprus situation further shows the commitment that the EU has to the Euro, they will do everything to preserve it. Mostly what he said was just rhetoric, he did not say anything concrete that would calm investor fears about the situation in Europe, we continue to look for the Euro to trade with a weak bias.

An interesting note that I read this morning was a drop in the value of the Korean Won, this is not a currency that we watch and have only done a few deals in it but clearly the crap coming out of North Korea is weighing on investors with money in the South, they are pulling money out of the country and moving it to safe haven countries.

For the US employment report today we are expecting the US economy to have created 190K new jobs and the unemployment rate to remain steady at 7.7%. A disappointing report should drive equities and the Greenback lower.

Groundhog day once again for USD.CAD, the Loonie did trade a little stronger yesterday afternoon but it was not able to hold that strength and once again USD.CAD is right back to the middle of our current trading range with little activity. We may get some volatility today as we also get the release of the Canadian employment report for March where we are expecting an increase of 9k and the unemployment rate to remain steady at 7.0%. Last month the economy created some 50k new jobs which I just find hard to believe so part of me just wants to expect a poor number in Canada which should push USD.CAD higher.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0136			1.0147
CAD/USD		0.9865			0.9855
EUR/USD		1.2929			1.2807
EUR/CAD		1.3108			1.2996
STG/CAD		1.5438			1.5284
AUD/CAD		1.0562			1.056
CAD/JPY		94.73			94.09
CAD/CHF		0.9273			0.9353
CAD/HKD		7.6385			7.63
CAD/CNY		6.1197			6.1131
CAD/MXN		12.1735			12.1376
Commodities
Gold		$1,551.00			$1,543.00
OIL		$92.77			$94.55
US DOLLAR INDEX
P.CLOSE		82.83			82.87
OPEN		82.83			83.41