Today’s
expected range for the Canadian Dollar against the US Dollar is .9770-.9870
Today’s expected range for the Canadian Dollar against the Euro is 1.2770-1.2870
Today’s expected range for the Canadian Dollar against Sterling is 1.5780-1.5850
The
US Dollar is for the most part weaker against most currencies with EURO.USD
moving above 1.3000 once again and it appears to be holding in at the moment.
In Europe this morning investors are quite positive that the bond buying
program announced by the ECB a few weeks back will stem the crisis and allow
the EU economy to concentrate on growth, In Germany the Investor Sentiment
survey came in above expectation confirming this view. There is also the prevailing
view that eventually Spain will need a bailout which for investors would be a positive
development, yesterday also saw Portugal announce a very severe new budget
which had protestors in the streets so the crisis has not completely gone away just
yet.
Strangely
enough the Canadian dollar lost value to the US and other currencies overnight which
I found a bit puzzling this morning. With the rise in the Euro and equity
markets all higher I would have bet the Canadian dollar would have been
stronger this morning, the only thing that I can put a weaker CAD down to now
is the McGuinty resignation and the closing of parliament (which just amazes me).
USD.CAD has finally broken out and is moving higher at the moment, I think
short USD/long CAD positions are getting stopped out at these levels.
Given
that risk sentiment is still on and the Euro looks to be moving stronger my
expectation is that this move higher for USD.CAD will be short lived, if I needed
to sell US dollars and have been holding on for a while because the rate was
very poor I would seriously look at .9850
as a good level to sell part of my holdings, if the EU gets there act together
and makes a positive announcement at this week’s EU summit USD.CAD could very
easily be back at .9750 before long.
It
is nice to see USD.CAD finally break out but I get a sense it will be
short-lived.
Have
a great day
Mike
GFX
Morning Currency Rates
|
|||||||
| Currencies | 7:00am Today's Opening | Yesterday's Opening | |||||
| USD/CAD | 0.9824 | 0.9777 | |||||
| CAD/USD | 1.0179 | 1.0228 | |||||
| EUR/USD | 1.3012 | 1.2962 | |||||
| EUR/CAD | 1.2785 | 1.2675 | |||||
| STG/CAD | 1.5808 | 1.5699 | |||||
| AUD/CAD | 1.0043 | 1.0006 | |||||
| CAD/JPY | 80.22 | 80.46 | |||||
| CAD/CHF | 0.945 | 0.9534 | |||||
| CAD/HKD | 7.8671 | 7.9048 | |||||
| CAD/CNY | 6.3722 | 6.4105 | |||||
| CAD/MXN | 13.0538 | 13.0998 | |||||
| Commodities | |||||||
| Gold | $1,741 | $1,748 | |||||
| OIL | $91.98 | $91.57 | |||||
| Option Volatility | |||||||
| Canada | |||||||
| O/N | 8.80% | 9.35% | |||||
| 1 Week | 6.49% | 6.41% | |||||
| 1 Month | 6.75% | 6.61% | |||||
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