Today’s
expected range for the Canadian Dollar against the US Dollar is .9850-.9950
Today’s expected range for the Canadian Dollar against the Euro is 1.2370-1.2470
Today’s
expected range for the Canadian Dollar against Sterling is 1.5680-1.5800
The
US Dollar is marginally stronger this morning as the EURO region reported poor
retail Sales numbers and investor optimism is starting to wane about the ECB
plan to buy short-term sovereign bonds. EURO.USD which had been on a roll fell
back to trade at 1.2520 overnight and will now probably stay in a tight range
ahead of tomorrow’s ECB interest rate announcement. While the market is
expecting a 0.25% interest rate cut, investor
focus will be on Draghi’s press conference where they will be looking for
information on the proposed bond buying program.
Canadian
Dollar trading will be dominated by the Bank of Canada announcement this
morning at 9:00 am, we are not expecting any
changes in interest rate policy and in fact we are not expecting much in
the way of change from last month, it is widely believed that the Bank will not
increase interest rates until the first quarter of 2013 at the earliest.
Yesterday I saw a BMO report that said they don’t expect a change in interest
rates until late 2013, so I am guessing that this report today will not contain
any surprises.
The
Canadian dollar is a bit weaker this morning and it looks like it is following
the Australian Dollar a bit, the Aussie has been under pressure the past few
sessions as the Reserve Bank of Australia did not cut interest rates on Monday and
their GDP is showing signs of slowing. AUD.CAD had been trading at a high of
1.0500and now trades at 1.0060 so a very big drop. Generally when one “commodity
currency” gets hit they all tend to suffer a bit so if this continues I would
not be surprised to see USD.CAD move back towards .9900. We do get the Aussie
employment report tomorrow, if that number is weak, AUD.CAD and AUD.USD will get hit and I would
think USD.CAD would jump a little.
The
Loonie has all but ignored the Quebec election, and now that the PQ only has a
minority Government and some 33% of the popular vote I don’t thnk that a
referendum will happen anytime soon, it was nice to see premier-elect Marois
let the Anglophone residents that she will protect their rights, if was living
in the west end of Montreal all right now I would not be feeling all that
comfortable. The Liberals will now have to regroup and elect a new leader, I
would give this government two years tops before they fall and a new election
is called. Would it not be great if the Liberals and the CAQ or whatever they
are called pulled a fast one and formed a coalition Government, that would make
political life very interesting!!
I
will send out a currency alert shortly after the Bank of Canada announcement.
Have
a great day
Mike
GFX
Morning Currency Rates
|
|||||||
Wednesday September
05, 2012
|
|||||||
| Currencies | 7:00am Today's Opening | Yesterday's Opening | |||||
| USD/CAD | 0.988 | 0.985 | |||||
| CAD/USD | 1.012 | 1.0152 | |||||
| EUR/USD | 1.2542 | 1.2593 | |||||
| EUR/CAD | 1.2395 | 1.2406 | |||||
| STG/CAD | 1.5702 | 1.564 | |||||
| AUD/CAD | 1.0062 | 1.0089 | |||||
| CAD/JPY | 79.3 | 79.58 | |||||
| CAD/CHF | 0.9685 | 0.9675 | |||||
| CAD/HKD | 7.827 | 7.852 | |||||
| CAD/CNY | 6.4229 | 6.4419 | |||||
| CAD/MXN | 13.3602 | 13.3966 | |||||
| Commodities | |||||||
| Gold | $1,963 | $1,694 | |||||
| OIL | $95.04 | $97.10 | |||||
| Option Volatility | |||||||
| Canada | |||||||
| O/N | 7.87% | 7.25% | |||||
| 1 Week | 6.94% | 6.75% | |||||
| 1 Month | 6.78% | 6.50% | |||||
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