Today’s
suggested range for the Canadian dollar against the US Dollar is .9980-1.0100
Today’s
suggested range for the Canadian dollar against the Euro is 1.2900-1.3025
Today’s
suggested range for the Canadian dollar against Sterling is 1.6100-1.6200
The
US Dollar is stronger this morning as financial markets react to the news that the
Greek political parties could not reach an agreement to form a coalition
Government. Equity markets throughout Europe are all lower on the expectation
now that Greece at some point will default and pull out of the European Union,
financial markets are very nervous at the moment as this is uncharted territory
and no one really knows what it means.
On
the opening in North America the Dow Jones index will be down around 100 points
to start the day, so clearly markets are nervous, Euro hit a four month low against
the Greenback as EURO.USD traded down to 1.2850, if at some point over the next
few weeks it is confirmed that Greece will leave the union I would think that
EURO.USD could easily surpass the 1.1900 levels that we saw two years ago.
Sterling has been able to hold its own against the Greenback which tells me
investors are selling Euro and buying Sterling as well as the US Dollar,
GBP.USD rose to trade at 1.6080. Given their own set of problems and close proximity
to Europe I am not quite sure why Sterling should benefit from a weaker Euro
but right now the pound is hanging in there.
Of
an interesting note this weekend was German Chancellor Merkel’s party lost another
state election to the Socialists, a clear indication that the German public is
growing weary of them bailing out the rest of Europe. National elections in
Germany will take place late in 2013 so Merkel has another year to try and get
the German people on side. If you think Greece is a problem wait and see what
happens if Germany elects an anti-austerity Government, I don’t think it will
be very pretty.
The
Canadian dollar is as you would imagine weaker against the US Dollar this morning
but not as weak as the other commodity currencies and is actually stronger
against the Euro and Sterling, relatively speaking the Loonie is performing
quite well through this mess. Last night the Aussie Dollar weakened off and now
trades at parity to the US dollar, this is the first time in months that Aussie
and the USD are at par.
For
today with the lack of economic reports being released the currency markets
will be dominated by the equity markets and with lots of red to be seen both in
Toronto and new York look for the US Dollar to benefit as investors run to the
safe haven of US treasury bills. I would expect USD.CAD to move higher again
today and possibly test the 1.0100 level at some point in the next few days, especially
if the Greek situation remains unresolved for an extended period.
Have
a great week
Mike
GFX
Morning Currency Rates
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Monday, May 14 2012
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| Currencies | 7:00am Today's Opening | Yesterday's Opening | |||||
| USD/CAD | 1.0048 | 1.0049 | |||||
| CAD/USD | 0.9952 | 0.9951 | |||||
| EUR/USD | 1.2867 | 1.2933 | |||||
| EUR/CAD | 1.2932 | 1.3001 | |||||
| STG/CAD | 1.614 | 1.6176 | |||||
| AUD/CAD | 1.0022 | 1.008 | |||||
| CAD/JPY | 79.44 | 79.49 | |||||
| CAD/CHF | 0.9283 | 0.9235 | |||||
| CAD/HKD | 7.7266 | 7.7235 | |||||
| CAD/CNY | 6.288 | 6.2762 | |||||
| CAD/MXN | 13.5878 | 13.4871 | |||||
| Commodities | |||||||
| Gold | $1,561 | $1,581 | |||||
| OIL | $94.19 | $95.95 | |||||
| Option Volatility | |||||||
| Canada | |||||||
| O/N | 12.36% | 8.07% | |||||
| 1 Week | 9.60% | 9.00% | |||||
| 1 Month | 9.36% | 8.95% | |||||
Today's Major Economic Releases
USA
none
Canada
none
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