GFX Currency Commentary

Good Morning,

Today’s suggested trading range for the Canadian dollar against the US Dollar is .9850-.9950

Today’s suggested trading range for the Canadian dollar against the Euro is 1.3025-1.3125

Today’s suggested trading range for the Canadian dollar against Sterling is 1.5720-1.5820

The US Dollar is marginally stronger this morning as overseas equity markets are all lower on the back of a poorer than expected US Consumer Confidence report on Friday. It appears the US consumer is very concerned with the price of gasoline and the effect that will have on the US recovery. EURO.USD fell from its Friday close to trade at 1.3145 and it looks set to test weaker today.

The UK Government will present their next budget to Parliament this week and it is expected that they will report the country ran a deficit of 120 billion pounds slightly less than they expected, more importantly bond rating agencies will be watching to see if they stick to their deficit reduction plan or increase spending to stimulate growth, either way I think Sterling will remain weak.

Once again the Canadian dollar had a very quiet night trading in a narrow range, it certainly seems that it will take some big news to shake the currency out of its doldrums

For today with little economic data due out look for USD.CAD to remain in relative stable ranges and follow the lead from the equity markets.

Have a great week

Mike

GFX Morning Currency Rates
Monday March 19th, 2012
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9917			0.9934
CAD/USD		1.0084			1.0066
EUR/USD		1.3166			1.3052
EUR/CAD		1.306			1.297
STG/CAD		1.5725			1.5622
AUD/CAD		1.0501			1.0463
CAD/JPY		83.76			84.23
CAD/CHF		0.9233			0.931
CAD/HKD		7.8255			7.8119
CAD/CNY		6.3712			6.3653
Commodities
Gold		$1,654			$1,647
OIL		$106.73			$105.23
Option Volatility
Canada
O/N		10.90%			7.17%
1 Week		8.28%			8.69%
1 Month		8.17%			8.33%