GFX Morning FX Commentary, March 26th, 2012

Good Morning

Todays suggested range for the Canadian dollar against the US Dollar is .9925 – 1.0025

Todays suggested range for the Canadian dollar against the Euro is 1.3200-1.3300

Todays suggested range for the Canadian dollar against Sterling is 1.5810-1.5910

The US Dollar is unchanged to start the new trading week in overall quiet trading conditions. Initially currency traders sold the Euro on the expectation that the US economy will continue to rebound but earlier this morning positive economic news came out of Germany and that gave the Euro a bit of a bounce so overall the currency markets were fairly lackluster and start up in North America where we left them on Friday.

The Canadian Dollar is unchanged against its US counterpart from its close on Friday as it settles in to trade around par for the next little while. The Loonie is far more active against the Euro and Sterling as activity with those currencies push the Loonie around much more than against the Greenback.

With the lack of economic activity today I would expect another quiet day for USD.CAD but with equity markets pointing higher to start off we favour a test of .9975 at some point but for the most part the markets should trade in a tight range. As the week goes on the currency markets should pick up as we do get more US economic data which will hopefully further confirm that a strong recovery is underway in the US.

Have a great week

Mike

GFX Morning Currency Rates
Monday march 26th, 2012
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9969			1.0005
CAD/USD		1.0031			0.9995
EUR/USD		1.3271			1.3251
EUR/CAD		1.32			1.3262
STG/CAD		1.5875			1.5871
AUD/CAD		1.0442			1.0405
CAD/JPY		82.98			82.58
CAD/CHF		0.9128			0.9085
CAD/HKD		7.797			7.76
CAD/CNY		6.3304			6.2977
Commodities
Gold		$1,661			$1,649
OIL		$106.58			$105.76
Option Volatility
Canada
O/N		10.87%			7.41%
1 Week		8.39%			8.88%
1 Month		8.82%			8.75%