GFX Morning Commentary, March 23rd, 2012

Good Morning,

Todays suggested range for the Canadian dollar against the US Dollar is .9975 – 1.0075

Todays suggested range for the Canadian dollar against the Euro is 1.3240-1.3350

Todays suggested range for the Canadian dollar against Sterling is 1.5860-1.5960

The US Dollar is mixed as it was weaker for most of the overnight session but has picked up some strength early this morning as equity markets have turned around, EURO.USD which hit a high of 1.3290 last night now trades near 1.3220 and looks like it wants to trade lower. There was no big news out overnight but there was further  negative news out of China as one of  their leading commercial banks reported poorer than expected results so the concerns over global growth still exist.

The Canadian Dollar is weaker overnight across all currencies with USD.CAD approaching par and EURO.CAD and GBP.CAD both higher. This morning the Canadian inflation report showed that inflation in Canada is starting to slowly rise but given that most of this comes from energy costs I don’t think the alarm bells are sounding just yet at the Bank of Canada, if inflation continues to push higher then they may be forced to raise interest rates sooner than later.

For today I would not expected USD.CAD to push much above par but you will see the Canadian weaker against the Euro and Sterling. We do get New Home Sales report out of the USA and it is expected to show one of the best months in years for home sales south of the border so that may get equity markets excited and push USD.CAD lower from current levels.

Have a great weekend

Mike

GFX Morning Currency Rates
Friday, March 23 2012
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		.9995			0.995
CAD/USD		1.0095			1.005
EUR/USD		1.3251			1.3162
EUR/CAD		1.3262			1.31
STG/CAD		1.5871			1.5723
AUD/CAD		1.0405			1.0321
CAD/JPY		82.58			83.29
CAD/CHF		0.9085			0.9199
CAD/HKD		7.76			7.799
CAD/CNY		6.2977			6.3464
Commodities
Gold		$1,649			$1,638
OIL		$105.76			$106.10
Option Volatility
Canada
O/N		7.41%			11.19%
1 Week		8.88%			8.54%
1 Month		8.75%			8.45%