GFX Morning FX Commentary Sept 25th

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 1.2600-1.2700

Today’s expected range for the Canadian Dollar against Sterling is 1.5875-1.5975

The US Dollar is weaker this morning as international equity markets are all lower on their reaction to the statement made yesterday afternoon by the  Philadelphia Federal Reserve member Charles Possler that the  recent round of QE announced by the Fed will do nothing to stimulate the economy, do nothing to create jobs and will help to raise long-term inflation. In Europe, the picture continues to look bleak and everything is pointing to a full Spanish bail-out,  Spanish government deficits continue to climb and the prospects of poor  bank stress test results have brought an end to the recent run that the Euro enjoyed. Also weighing on the Euro was the announcement that Italian Prime Minister Monti will not seek re-election, as a technocrat and not a career politician, Monti is very highly regarded in EU circles and with him stepping aside will leave a big void to be filled. There are reports that former Prime Minister Berlusconi might try his luck again, can’t say Italian politics are boring !!

The Canadian Dollar continues to trade back and forth around the .9800 level in very uninspiring ranges, with all the negative news hitting the market in the past couple of days and now with the  growing dissention on the board of the Federal Reserve going public it looks like we may see the Loonie give back some gains in the coming sessions as equity markets are once again getting nervous . In the US we only get new home sales so the markets should be once again trading in a subdued range, the economic data does pick up later in the week.

 

Have a great day

Mike

GFX Morning Currency Rates
Wednesday September 26, 2012
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9809			0.9806
CAD/USD		1.0195			1.0198
EUR/USD		1.2862			1.2909
EUR/CAD		1.2618			1.266
STG/CAD		1.5884			1.59
AUD/CAD		1.0134			1.0188
CAD/JPY		79.14			79.27
CAD/CHF		0.9574			0.9545
CAD/HKD		7.8819			7.8836
CAD/CNY		6.3029			6.4295
CAD/MXN		13.1473			13.1928
Commodities
Gold		$1,766			$1,767
OIL		$90.69			$92.34
Option Volatility
Canada
O/N		9.62%			11.49%
1 Week		7.07%			7.35%
1 Month		6.57%			6.86%