GFX Morning FX Commentary, June 27th, 2012

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0200-1.0300

Today's expected range for the Canadian Dollar against the Euro is 1.2780-1.2900

Today's expected range for the Canadian Dollar against Sterling is 1.5980-1.6100

The US Dollar is marginally stronger in very narrow trading ranges as the Euro is weaker on higher borrowing costs for Italy this morning. Markets should remain quiet ahead of the EU summit starting tomorrow on the hope that some positive news will come out of it but I am not holding out much hope.

Many economists have stated that the solution to the problem is for the EU to forge a closer financial bond by issuing common EU bonds which would be backed by all the countries in the Union. As I mentioned yesterday Germany is sternly opposed to this and yesterday afternoon German Chancellor Angela Merkel stated in a not so subtle manner that it would only happen over "her dead body". Nice words from a world leader that is supposed to be leading Europe out of this crisis.

No change for the Canadian Dollar as once again it trades in tight overnight ranges as it awaits developments in the Global economy.

Up today we do get the release of some secondary US housing data but with the EU summit the big event this week I doubt much will happen today.

Have a great day

Mike

GFX Morning Currency Rates
Wednesday June 27, 2012
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0247			1.0254
CAD/USD		0.9758			0.9752
EUR/USD		1.2495			1.2497
EUR/CAD		1.2806			1.2818
STG/CAD		1.6014			1.6039
AUD/CAD		1.0324			1.0307
CAD/JPY		77.56			77.32
CAD/CHF		0.9373			0.9363
CAD/HKD		7.5648			7.5583
CAD/CNY		6.1998			6.2018
CAD/MXN		13.4381			13.5247
Commodities
Gold		$1,568			$1,585
OIL		$79.13			$79.36
Option Volatility
Canada
O/N		13.50%			13.70%
1 Week		9.85%			9.86%
1 Month		9.50%			9.51%

Today's Economic Calendar

USA
Durable Goods Orders for May (08:30)
Pending Home Sales for May (10:00)

CANADA
None