GFX Morning FX Commentary Oct 12th, 2012

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is .9750-.9850

Today’s expected range for the Canadian Dollar against the Euro is 1.2650-1.2750

Today’s expected range for the Canadian Dollar against Sterling is 1.5670-1.5870

The US Dollar is marginally weaker this morning as better than expected Euro-Zone Industrial Production numbers and further speculation of Spain asking for a bailout have pushed the Euro a little higher overnight. I am not sure that it had any effect on the value of the Euro this morning but the Nobel Committee announced in Oslo announced that it has awarded the Nobel Peace Prize to the European Union for its work in promoting peace around the world, a bit of a head scratcher but there you go. I wonder who gets to keep the cash that comes with the award, I guess they can divide it up amongst the 17 countries and apply it to their deficits.

Equity markets are pointing higher again this morning as they are reacting positively to yesterday’s announcement of a big drop in unemployment claims in the US, it does look like the US is seeing a limited rebound and employment will continue to grow (albeit slowly) as the housing market continues to recover. This morning further evidence of the recovery in the USA came out when JPMORGAN CHASE came out with better than expected earnings, for a recovery to take hold in the US you will need to see a strong financial sector.

Nothing new on the Canadian Dollar front, USD.CAD continues to hang around the .9800 level in very uninspiring trading patterns. We do get some Consumer sentiment data and inflation data out of the US today so we may see a bit of volatility but for the most part I would expect the currency markets to ignore these numbers and USD.CAD will continue to trade in narrow ranges.

Have a great weekend

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9777			0.9789
CAD/USD		1.0228			1.0215
EUR/USD		1.2963			1.2909
EUR/CAD		1.2675			1.2638
STG/CAD		1.5693			1.5693
AUD/CAD		1.0021			1.0067
CAD/JPY		80.21			79.92
CAD/CHF		0.9535			0.955
CAD/HKD		7.9076			7.8978
CAD/CNY		6.4068			6.405
CAD/MXN		13.1761			13.2044
Commodities
Gold		$1,770			$1,772
OIL		$92.17			$92.03
Option Volatility
Canada
O/N		6.72%			10.13%
1 Week		6.86%			6.74%
1 Month		6.72%			6.70%