GFX Morning FX Commentary, July 3rd, 2012

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0125-1.0200    

Today's expected range for the Canadian Dollar against the Euro is 1.2760-1.2860

Today's expected range for the Canadian Dollar against Sterling is 1.5910-1.6010

The US Dollar is marginally stronger from where we left it on Friday before the Canadian Holiday. Yesterday was the release of some porter than expected manufacturing data out of the USA and China, investors hit the equity markets and pushed the US Dollar, it certainly looks now that the slowdown in Europe and China is having an effect on the recovery in the US. Markets did recover somewhat this morning as investors are expecting Central Banks to start adding stimulus to the global economies, with the  Bank of England announcing interest rate policy  this week this expectation takes on added significance.

The Canadian Dollar is marginally higher from our close on Friday but for the most part was once again on the sidelines. I would not expect much to happen today as the US markets will grind to a close today to leave early to celebrate the 4th of July holiday. Ahead of that we do get some further manufacturing data out of the US which given the poor number on Monday will be watched a little closer than it may have been last month.

Up today with North American equity markets pointing slightly higher I would expect USD.CAD to move a little lower but as I mentioned ahead of the US holiday tomorrow ranges should be subdued.

Have a great week

Mike

GFX Morning Currency Rates
Tuesday July 3rd, 2012
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0152			1.0236
CAD/USD		0.985			0.9764
EUR/USD		1.2577			1.2583
EUR/CAD		1.2769			1.2883
STG/CAD		1.5913			1.598
AUD/CAD		1.0415			1.0422
CAD/JPY		78.6			77.62
CAD/CHF		0.9404			0.9323
CAD/HKD		7.6328			7.5703
CAD/CNY		6.353			6.2054
CAD/MXN					13.1024
Commodities
Gold		$1,609			$1,572
OIL		$85.23			$80.13
Option Volatility
Canada
O/N		11.81%			9.89%
1 Week		9.25%			10.26%
1 Month		9.13%			9.64%

Today's Economic Calendar

USA
Factory Orders for May (10:00)

CANADA
None