GFX Morning FX Commentary May 30th, 2013

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0330-1.0420

Today’s expected range for the Canadian Dollar against the Euro is 1.3400-1.3475

Today’s expected range for the Canadian Dollar against Sterling is 1.5650-1.5720

Apologies for yesterday, it seems I had a little trouble with the cut and paste feature and inadvertently  I sent out Tuesday’s commentary.

The US Dollar is  marginally stronger this morning as once again the Yen dominated currency trading overnight. This time it was several comments from a Japanese Government official that stated the recent rise in the Nikkei Stock Exchange was too fast and that the IMF is supporting the Japanese Government’s stimulus policy. Right after these comments the Nikkei plunged 5% and the Yen dropped over 100 points against the Greenback, is it any wonder why politicians are better served when they keep their mouth shut.

The Euro is marginally lower to start the day but really had a very quiet night, the Loonie continues to lose a bit of ground to the Euro as EURO.CAD looks set to break above 1.3400, Euro buyers should be ready and leave their orders if we see a break back towards 1.3300 in the coming days.

Yesterday saw Mark Carney ride off into an English sunset with a statement that was much like the previous ones, interest rates are appropriate for the time being but the next change in interest rates will be a move higher. There was no timeframe on when this is going to happen but with the likelihood of US stimulus being reduced sooner than later we could see an interest rate hike in Canada towards the end of the year.

We have a busy economic calendar today with the US GDP report for the first quarter headlining the day. We are expecting a growth rate of 2.5% on an annualized basis, markets will be looking for any sign of improvement on that number, especially after the strong housing numbers early in the week.  We have a slew of secondary data out as well today so we could have a very volatile morning, if we see a strong GDP report it could be the catalyst to push USD.CAD above the 1.0400 level.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.035			1.039
CAD/USD		0.9662			0.9625
EUR/USD		1.2983			1.2924
EUR/CAD		1.3441			1.3428
STG/CAD		1.5684			1.5638
AUD/CAD		0.997			0.9985
CAD/JPY		97.95			97.6
CAD/CHF		0.9274			0.93
CAD/HKD		7.4768			7.4553
CAD/CNY		5.9201			5.894
CAD/MXN		12.2567			12.206
Commodities
Gold		$1,400.00			$1,386.00
OIL		$92.71			$94.45
US DOLLAR INDEX
P.CLOSE		83.67			84.3
OPEN		83.52			83.65