GFX Morning FX Commentary, March 29th, 2012

Good Morning,

Todays suggested range for the Canadian dollar against the US Dollar is .9950 – 1.0050.

Todays suggested range for the Canadian dollar against the Euro is 1.3275-1.3400

Todays suggested range for the Canadian dollar  against Sterling is 1.5770-1.5900

The US Dollar is stronger in overnight trading as EU leaders are set to announce an increase in the rescue fund to a USD equivalent of 1.3 Trillion, with a lot of this being set aside to assist Spain and Italy.

EURO.USD which had been trading at 1.3340 fell in the overnight session to trade at 1.3275 so the Euro is still being spooked by debt crisis events, not even than a stronger than expected German employment report could give the Euro a boost last night

With the resurgence of the Greenback over the last couple sessions USD.CAD has moved back towards par and just really continues to remain on the sidelines reacting to events outside the country. The volatility in the Loonie remains against both the Euro and Sterling’s as EURO.CAD and GBP.CAD continue to push higher.

We may get some enhanced volatility around the release of the US 4th quarter GDP report this morning and the release of the Canadian Federal Budget this afternoon. If the GDP report is better than expected then you will see equity markets jump and USD.CAD drop lower, just the opposite will occur if the number is less than expectation, USD.CAD will jump above par.

The financial markets will be watching the Fed's budget today to determine if their plan for reducing the deficit is credible, if markets don't think they are doing enough to slay the deficit then the Canadian Dollar will get hit and USD.CAD will move higher as a result, if it is perceived as a deficit fighting budget then the Loonie should get a small boost.

Have a great day

Mike

GFX Morning Currency Rates
Thursday March 29th, 2012
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0002			0.9965
CAD/USD		0.9998			1.0035
EUR/USD		1.328			1.3348
EUR/CAD		1.3286			1.3302
STG/CAD		1.588			1.5859
AUD/CAD		1.0347			1.0375
CAD/JPY		82.23			83.26
CAD/CHF		0.9069			0.9063
CAD/HKD		7.7644			7.7902
CAD/CNY		6.306			6.3235
CAD/MXN		12.8117			12.8195
Commodities
Gold		$1,656			$1,676
OIL		$104.87			$106.30
Option Volatility
Canada
O/N		11.15%			11.12%
1 Week		8.55%			8.52%
1 Month		8.62%			8.60%