GFX Morning Commentary Sept 25th, 2012

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is .9775-.9850

Today’s expected range for the Canadian Dollar against the Euro is 1.2650-1.2740

Today’s expected range for the Canadian Dollar against Sterling is 1.5880-1.5975

The US Dollar is marginally stronger this morning as Consumer Confidence in the EU’s largest economy is declining, The Spanish Government is asking just how much Spanish debt the ECB will buy before it determines if it will apply for a full bail-out and large machine manufacturer Caterpillar announced a softened outlook sighting a slowing global economy. On these comments overnight equities gave back some strength and EURO.USD fell to trade at a low of 1.2895, It has pulled back from its lowest level but for now it appears that the Euro is running out of steam.

The Canadian Dollar had a very tight range overnight as it continues to trade back and forth around the .9800 level, we do today get the Canadian Retail Sales report for July but more importantly we get some more data on the US housing market which if it further confirms an improving US housing picture should give equities a bit of a boost and the USD may give up some gains. Given current trading conditions I would not expect much of a trading range but if you have been waiting to sell some US Dollars you should at the very least get .9800 at some point today.

Have a great day

Mike

GFX Morning Currency Rates
Tuesday September 25, 2012
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9806			0.9809
CAD/USD		1.0198			1.0195
EUR/USD		1.2909			1.2907
EUR/CAD		1.266			1.2662
STG/CAD		1.59			1.5901
AUD/CAD		1.0188			1.0173
CAD/JPY		79.27			79.52
CAD/CHF		0.9545			0.9544
CAD/HKD		7.8836			7.8804
CAD/CNY		6.4295			6.4245
CAD/MXN		13.1928			13.1891
Commodities
Gold		$1,767			$1,760
OIL		$92.34			$91.62
Option Volatility
Canada
O/N		11.49%			9.89%
1 Week		7.35%			7.13%
1 Month		6.86%			6.63%