GFX Market Commentary, February 27th, 2012

Good Morning,

Todays suggested range for the Canadian dollar against the US Dollar  is 1.0000 – 1.0070. 

Todays suggested range for the Canadian dollar against the Euro  is 1.3410-1.3525 

Todays suggested range for the Canadian dollar against Sterling is 1.5870-1.5900 

The US Dollar is mixed  this morning as the Euro continues to gain strength on the resolution of the Greek situation and stronger equity markets but EURO.USD is off its highs as the G20 finance Ministers meeting in Mexico did not agree on providing any funding to the EU bailout fund. Overnight the Euro initially was marginally stronger against the US Dollar but has given up some of that strength this morning as equity markets are all lower and are also pointing lower to start the North American trading day, the Euro market will await the results of German parliamentary vote on the Greek bailout, it is expected to pass so we are not looking for any upset in the market.

With an overall stronger  US Dollar and weaker equity markets the Canadian dollar is marginally weaker this morning as USD.CAD has moved back near  parity but as the US Dollar started to recover during the overnight session USD.CAD also fell back but still is higher than where we left it on Friday.  Once again we continue to see the Loonie oscillate around par as it waits for a breakout, I think this trading pattern will continue for some time as the Loonie takes a back seat to other currencies

On tap today we do we more US housing data and it is expected to show a jump in existing home purchases which if the number exceeds expectation should give Equity markets a boost and the Loonie will recover a bit, later in the week we do get US GDP and employment report on Friday so the markets will get geared up for their release.

Have a great week

Mike

GFX FOREIGN EXCHANGE MORNING UPDATE

Monday, February-27-12

Market Indicators                   * For current market prices please contact our currency advisors or visit our
                                                  online site at www.gfxpartners.ca *

Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0018			0.997
CAD/USD		0.9982			1.003
EUR/USD		1.3405			1.3413
EUR/CAD		1.3545			1.3374
STG/CAD		1.5922			1.576
AUD/CAD		1.0707			1.0708
CAD/JPY		80.34			80.72
CAD/CHF		0.8953			0.9004
CAD/HKD		7.7273			7.7763
CAD/CNY		6.2768			6.3134
Commodities
Gold		$1,768			$1,782
OIL		$108.52			$108.30
Option Volatility
Canada
O/N		11.02%			7.06%
1 Week		8.41%			8.50%
1 Month		8.40%			8.61%