GFX Morning FX Commentary August 9th, 2012

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is .9925-1.0025

Today’s expected range for the Canadian Dollar against the Euro is 1.2210-1.2300

Today’s expected range for the Canadian Dollar against Sterling is 1.5520-1.5620

The US Dollar is marginally stronger as the Euro continues to decline after setting new highs earlier in the week. The Euro was lower on an ECB survey that showed most participants predicted further contraction in the EU economy. Markets did get a bit of good news as Chinese inflation data showed the rate of inflation was slowing in China which led investors to hope that further stimulus could be provided to the Chinese economy which would push global growth higher.

The Canadian Dollar continues to hold onto its current strength but cannot really extend any further gains at the moment, overnight ranges are very narrow and the risk still remains of a quick and violent move back above par, any Canadian Dollar strength will be slow and steady. Up today we do get some trade data out of both countries but I don’t imagine that it will have much effect on the Loonie, we also get some Canadian housing data today, this data may take on more significance as we are seeing more and more economists talk about a slowdown in the Canadian housing market. A big drop in the July housing numbers could push USD.CAD higher.

I will be out of the office for the next 10 days as Mrs Smith and I are off to Quebec city for a few days to visit the National Park and the Irish Famine Memorial on the Island of Grosse-Isle. I will be checking email but in my absence if you need anything just give Randy or Mike a call. In my absence Rich will be writing the commentary.

Have a great day

Mike

GFX Morning Currency Rates
Thursday August 09, 2012
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9941			0.9967
CAD/USD		1.0059			1.0033
EUR/USD		1.2311			1.2355
EUR/CAD		1.2242			1.2316
STG/CAD		1.5549			1.5896
AUD/CAD		1.0511			1.0527
CAD/JPY		78.75			78.53
CAD/CHF		0.9805			0.9746
CAD/HKD		7.7937			7.7358
CAD/CNY		6.3948			6.3826
CAD/MXN		132476			13.2898
Commodities
Gold		$1,615			$1,609
OIL		$93.62			$93.08
Option Volatility
Canada
O/N		10.50%			10.52%
1 Week		7.80%			7.83%
1 Month		7.65%			7.71%