GFX Morning Commentary, March 27th, 2012

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is .9870-.9970

Today’s expected range for the Canadian Dollar against the Euro is 1.3220-1.3320

Today’s expected range for the Canadian Dollar against Sterling is 1.5810-1.5925

The US Dollar was marginally weaker early in the overnight session but it is now off its weakest levels against the Euro this morning and appears that it wants to get stronger this morning. Yesterday Fed Chairman Ben Bernanke made the statement that it will be difficult for the US economy to maintain the current level of job growth, a statement that global investors think may be hinting at another round of stimulus for the US economy, if this is the case and the Fed does another round of stimulus then look for equity markets to bounce higher and the Greenback to weaken off.

The Canadian Dollar had a quiet overnight session as it settles in above the .9900 level, a strong rally yesterday brought on by the higher equity markets resulting from the Bernanke comments pushed USD.CAD lower throughout the afternoon. The Canadian Dollar continues to trade back and forth without any real sense of direction and is just responding to developments in the equity market around the world.

Up today we get the US Consumer Confidence report which is expected to show that consumers are still upbeat about the recovery, if the number comes in as expected it should allow equity markets to have another positive day and USD.CAD should test the .9900 level at some point, if the number comes in weaker than expected then equity markets will fall off and USD.CAD will jump back towards the .9950 level.

Have a great day

Mike

GFX Morning Currency Rates
Tuesday March 27th, 2012
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9918			0.9969
CAD/USD		1.0085			1.0031
EUR/USD		1.3355			1.3271
EUR/CAD		1.3245			1.32
STG/CAD		1.583			1.5875
AUD/CAD		1.0438			1.0442
CAD/JPY		83.48			82.98
CAD/CHF		0.9099			0.9128
CAD/HKD		7.8284			7.797
CAD/CNY		6.3556			6.3304
CAD/MXN		12.743
Commodities
Gold		$1,692			$1,661
OIL		$107.26			$106.58
Option Volatility
Canada
O/N		10.73%			10.87%
1 Week		8.27%			8.39%
1 Month		8.61%			8.82%