GFX Morning Commentary, March 12th, 2012

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is .9850-.9950

Today’s expected range for the Canadian Dollar against the Euro is 1.2975-1.3100

Today’s expected range for the Canadian Dollar against Sterling is 1.5470-1.5600

The US Dollar is Marginally weaker this morning in very quiet trading markets. EURO.USD has moved a touch higher overnight as equity markets are off their highs as China reported a poorer than expected trade numbers, they have reported their biggest trade deficit since 1989 with exports rising but imports were much higher than expected. The Greenback for the most part has been able to hang onto its recent gains as the jobs report from Friday was very strong and the fact that two ratings agencies have come out and ruled that the recently completed Greek debt swap is in fact a default will continue to weigh on the Euro.

Not much to say on the Canadian Dollar, once again it traded in a tight range near the .9900 level, it is hanging on to last week’s strength despite the poor Canadian jobs report on Friday. With the lack of economic reports this morning I am not expecting much of a trading range for today, the equity markets are pointing a little bit lower to start the day  so I would not be surprised if we see USD.CAD move higher to start the North American trading day. There are reports coming out of Australia that “unknown companies” are expressing interest in purchasing Canadian grain handler Viterra, a deal if the rumour is true that could be worth upwards of $5B, if it goes through it could put short-term pressure on the Canadian dollar and move USD.CAD lower, but right now it is just a rumour.

Have a great day

Mike

GFX Morning FX Rates
Monday March 12th
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9907			0.9925
CAD/USD		1.3111			1.0075
EUR/USD		1.5632			1.3217
EUR/CAD		1.0512			1.3121
STG/CAD		0.8166			1.567
AUD/CAD		82.34			1.054
CAD/JPY		0.9194			82.39
CAD/CHF		1.299			0.9182
CAD/HKD		1.5487			7.8146
CAD/CNY					7.8146
Commodities
Gold		$1,704			$1,700
OIL		$106.47			$106.78
Option Volatility
Canada		11.93%
O/N		9.20%			7.78%
1 Week		8.83%			9.52%
1 Month					8.91%