GFX Afternoon Update May 22 2013

Good Afternoon

FED Governor Ben Bernanke made comments that indicated in a few months there may be a review of the level of quantitative easing and interest rates. These comments caused a lot of volatility with the US Dollar reaching daily highs and lows during Bernanke's speech. Now the US Dollar is stronger against all currencies after Bernanke's speech was finished and the impact became clear. 

US housing numbers for April were released and were at 4.97 million, there highest level since 2009. Existing Home change was at .6% which was below the expected value for the change. 

Canadian Retail sales report was released at the beginning of the day coming in lower than expected with no gain in retail sales, weakening the Canadian Dollar. The Canadian Dollar has since strengthened against the Euro but this has more to do with Euro weakness then Canadian Dollar strength.

Later today the minutes from the FED meeting which will reveal what quantitative easing levels the FED wants and when they will get there. Volatility is expected after these minutes are released and the FEDs plan becomes clear. 

Yonah