GFX Morning FX Commentary, April 3rd, 2012

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is .9875-.9975

Today's expected range for the Canadian Dollar against the Euro is 1.3200-1.3300

Today's expected range for the Canadian Dollar against Sterling is 1.5860-1.5975

The US Dollar is unchanged from yesterday's close as it continues to trade in narrow ranges across a wide band of currency pairs. Overnight the Euro received a tiny boost from EU official comments that a conversation on a possible Spanish bailout was not needed as they Government was committed to getting their deficit under control. Also last night saw the Australian Reserve Bank hold the line on interest rates but made the statement that further rate cuts may be necessary, the Australian Dollar was considerably weaker on this news.

In Europe tomorrow we get the ECB announcement on interest and while there won't be any change to their rate it will be very interesting on what they say about the European economy, we may see some fireworks tomorrow in Euro land.

The Canadian Dollar had a very strong day yesterday as comments from Mark Carney were upbeat on the economy in comments he made during a speech,  also yesterday there was a report from Moody's saying the Canadian Government fiscal picture was in good shape, On these developments USD.CAD was able to breakout and  test below the .9950 level, given the current lackluster trading environment it is not surprising that USD.CAD moved back higher overnight, it just seems that the Loonie cannot hold any rallies and each time it shows signs of strength it snaps back towards par.

Up today we get the release of the minutes from the last US Federal Reserve Meeting where market analysts will be looking for any signs the Fed is willing to provide another round of stimulus to the US economy, we also get the release of US Factory orders which is expected to further confirm a modest recovery in the US.

For today US Dollar buyers should leave their orders around the .9900 level and barring any surprises from the Federal Reserve minutes US Dollar sellers should be able to get .9950 at some point today.

Reminder to get your orders in ahead of Friday’s US employment report, with the rest of the world closed for Good Friday celebrations it cold be a very volatile day and you will want to take advantage of any crazy moves.

Have a great day

Mike

GFX Morning Currency Rates
Tuesday, April 03 2012
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9918			0.9983
CAD/USD		1.0083			1.0017
EUR/USD		1.3336			1.3339
EUR/CAD		1.3229			1.3319
STG/CAD		1.5873			1.6012
AUD/CAD		1.0285			1.037
CAD/JPY		82.66			82.79
CAD/CHF		0.9094			0.9036
CAD/HKD		7.8265			7.776
CAD/CNY		6.3464			6.3054
CAD/MXN		12.8683			12.798
Commodities
Gold		$1,678			$1,663
OIL		$104.42			$102.44
Option Volatility
Canada
O/N		9.85%			10.90%
1 Week		7.56%			8.45%
1 Month		8.27%			8.41%