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 1.3100-1.3200
Todays
suggested range for the Canadian dollar against Sterling is 1.5710-1.5825
The US Dollar is virtually unchanged when compared to
our close Friday against the world's major currencies the Greenback is
considerably stronger against the world's commodity currencies this morning.
Overnight the Chinese Finance Ministry announced that they are revising their
growth target down to 7.5% for 2012 from 8.0% which had been their target level
for many years, 7.5% will be the lowest
growth rate in China since 2004. As China is the world's largest importer of
raw materials it is not surprising that a slowdown in their economy will have a
negative effect on the Canadian and Australian Dollars and other commodity
currencies.
The Euro was very stable against the US Dollar overnight
as a surprisingly better than expected Euro-Zone retail sales report offset the
poor Chinese data and supported the Euro against the Greenback.
It did not take long for the Canadian Dollar to give back
a lot of its recent strength, with the announcement of slower growth in China
USD.CAD moved back above the .9900 level very quickly overnight as the prospect
of the Canadian raw material sector selling less to China this year as left global
investors worried about the overall Canadian economy. I would think that the
Loonie won't give up that much more today as we will see the currency oscillate
around the .9900 level as I mention on Friday,
The Currency markets will be setting up for a very
busy week as we have no less than 5 Central Banks reporting on interest rates
this week, including the Bank of Canada, the European Central Bank and the Bank
of England on Thursday, the week is capped off by the US and Canadian
Employment reports on Friday, in between we have a number of secondary economic
data being released that should continue to point to a slow US recovery. Ahead of all this activity look for USD.CAD to
continue to move around the .9900 level, I would think a wise strategy for early
this week would have US dollar buyers picking up some US Dollars up on any
moves towards the .9900 and if you need to sell some US this week look to .9950
as a realistic level. If any of these reports this week disrupt expectation the
currency markets could get quite volatile and who knows where they will end up.
Have a great week
Mike
GFX FOREIGN EXCHANGE MORNING UPDATE
Monday, March-05-12
Market Indicators * For current market prices please contact our currency advisors or visit
ouron line site at www.gfxpartners.ca *
| Currencies | 7:00am Today's Opening | Yesterday's Opening | |||||
| USD/CAD | 0.9955 | 0.9864 | |||||
| CAD/USD | 1.0045 | 1.0138 | |||||
| EUR/USD | 1.3186 | 1.325 | |||||
| EUR/CAD | 1.3128 | 1.3071 | |||||
| STG/CAD | 1.575 | 1.5709 | |||||
| AUD/CAD | 1.0627 | 1.0637 | |||||
| CAD/JPY | 81.6 | 82.57 | |||||
| CAD/CHF | 0.9189 | 0.922 | |||||
| CAD/HKD | 7.7969 | 7.8642 | |||||
| CAD/CNY | 6.3315 | 3.3818 | |||||
| Commodities | |||||||
| Gold | $1,698 | $1,717 | |||||
| OIL | $106.15 | $108.29 | |||||
| Option Volatility | |||||||
| Canada | |||||||
| O/N | 11.72% | 7.00% | |||||
| 1 Week | 8.98% | 9.00% | |||||
| 1 Month | 8.57% | 8.50% | |||||
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