GFX Morning FX Commentary May 7th, 2013

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0025-1.0100

Today’s expected range for the Canadian Dollar against the Euro is 1.3160-1.3250

Today’s expected range for the Canadian Dollar against Sterling is 1.5600-1.5675

The US Dollar is weaker this morning as the German Factory orders report for March gave the Euro a boost this morning, jumping from a low of 1.3070 to trade as high as 1.3130. In Germany economists were expecting a drop in Factory Orders of 0.5% and it actually came in at a gain of 2.2%, once again it is good to see that economists are on top of their game. Given the current state of the EU economy and the ECB cutting interest rates I would suspect this is a onetime gain for Germany, it will be interesting to see if that economy can get on a roll, I somehow doubt it.

In other FX news the Reserve Bank of Australia announced an interest rate cut last night, AUD.USD fell from a high of 1.0240 to trade at 1.0160, AUD.CAD also has been on a wild ride trading down to level of 1.0210, just last week AUD.CAD was trading as high as 1.0650 so a massive move for the Australian Dollar, if you are buying anything in Australia or going there on a holiday your costs to buy that currency have decreased dramatically.

The Canadian Dollar continues its program of slowly getting stronger, USD.CAD once again dropped a little last night but for the most part is still being ignored by the world’s currency traders, this may change when we see the Canadian Employment report on Friday but for now USD.CAD trading will continue to be subdued. Given today’s surge in the Euro and the overall negative feeling to the US Dollar at the moment I won’t be surprised if we hit parity at some point this week, US Dollar sellers need to leave their orders between the 1.0075 and 1.0100 levels to try and take advantage of any quick pullbacks.

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.005			1.0083
CAD/USD		0.995			0.9917
EUR/USD		1.3115			1.3105
EUR/CAD		1.3176			1.3216
STG/CAD		1.5602			1.5693
AUD/CAD		98.76			1.0341
CAD/JPY		1.023			98.37
CAD/CHF		98.76			0.9291
CAD/HKD		0.9352			7.674
CAD/CNY		7.7065			6.1128
CAD/MXN		6.122			11.991
Commodities
Gold		$1,460.00			$1,474.00
OIL		$95.75			$96.12
US DOLLAR INDEX
P.CLOSE		82.38			82.16
OPEN		82.12			82.26