GFX Morning FX Commentary, March 28th, 2012

Good Morning,

Todays suggested range for the Canadian dollar against the US Dollar is .9900- 1.0000

Todays suggested range for the Canadian dollar against the Euro is 1.3270-1.3400

Todays suggested range for the Canadian dollar against Sterling is 1.5820-1.5920

The US Dollar is mixed this morning as the Euro is enjoying a bit of a resurgence on the back of official comments coming out of Europe. In Italy, Prime Minister Draghi made the statement that the debt crisis is "almost over" and there are also reports coming out that at an EU meeting later this week the rescue fund will be significantly increased to help contain any future problems, strange but I just can't convince myself that all is rosy in Europe at the moment, I must becoming a skeptic in my old age.

Sterling had a big drop overnight as the UK GDP came in much worse than expected, 4^th quarter GDP fell 0.3%, this is following a decline of 0.2% in the third quarter which indicates that the UK is in a recession. Things are not good over there so look for the Bank of England to consider adding more stimulus to the economy, Sterling should continue to trade with a weak bias for some time. GBP.CAD is also a bit lower as it tested 1.5900 yesterday and now looks set to test back at 1.5820.

The Canadian Dollar is marginally weaker to start the morning session in narrow overnight range trading against the US Dollar , without any clear direction the Loonie continues to trade back and forth against its US counterpart in very uninspired trading patterns.

For today we do get the release of some secondary US data but it should not have much of an impact, with US futures pointing to a higher opening this morning I would expected USD.CAD to drop back a bit towards .9950 to start the day. Tomorrow should be an interesting day as we get the release of the US GDP for the 4^th quarter of 2011, all financial markets will want confirmation that the US economy is starting to push forward.

Have a great day

Mike

GFX Morning Currency Rates
Wednesday March 28th, 2012
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9965			0.9918
CAD/USD		1.0035			1.0085
EUR/USD		1.3348			1.3355
EUR/CAD		1.3302			1.3245
STG/CAD		1.5859			1.583
AUD/CAD		1.0375			1.0438
CAD/JPY		83.26			83.48
CAD/CHF		0.9063			0.9099
CAD/HKD		7.7902			7.8284
CAD/CNY		6.3235			6.3556
CAD/MXN		12.8195			12.743
Commodities
Gold		$1,676			$1,692
OIL		$106.30			$107.26
Option Volatility
Canada
O/N		11.12%			10.73%
1 Week		8.52%			8.27%
1 Month		8.60%			8.61%