GFX Morning FX Commentary Nov 28th, 2012

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is .9910-.9975

Today’s expected range for the Canadian Dollar against the Euro is 1.2790-1.2860

Today’s expected range for the Canadian Dollar against Sterling is 1.5850-1.5930

The US Dollar is stronger this morning as talk of a deadlock in “Fiscal Cliff” discussions have hurt equity markets and pushed the US Dollar higher. Overnight EURO.USD fell to trade at 1.2890 as the wind was taken out of recent Euro strength. Look for a lot more of this rhetoric over the next few weeks affecting the market, I mean who would have thought that Democrats and Republicans could not get along when talking about the economy, I am shocked that this thing has not been settled yet, perhaps they should all jump off the cliff and that would solve the problem. The Euro also traded lower on fears that the Greek debt agreement will not go over as planned and a bigger than expected drop in German Consumer prices, lots for investors to worry about in Europe.

The Canadian Dollar is just slightly weaker than where we left it last night and is firmly stuck in the .9910-.9975 trading range, last night the currency moved less than 15 pips so the Loonie is pretty much on ignore from global currency traders.

With no major economic releases until tomorrow (US Q3 GDP) I am not expecting much of a move today, over the next few days I would still be cautious that USD.CAD can move higher on any negative news hitting markets but for now USD.CAD should remain range bound with very uninspiring trading conditions.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9948			0.9921
CAD/USD		1.0052			1.0079
EUR/USD		1.2901			1.2979
EUR/CAD		1.2836			1.2847
STG/CAD		1.5912			1.5897
AUD/CAD		1.0389			1.0395
CAD/JPY		82.28			82.67
CAD/CHF		0.937			0.9369
CAD/HKD		7.7689			7.7902
CAD/CNY		6.252			6.2687
CAD/MXN		13.1446			13.102
Commodities
Gold		$87			$88
OIL		$1,738.00			$1,747.00
Option Volatility
Canada
O/N		7.24%			6.94%
1 Week		5.07%			4.84%
1 Month		5.03%			5.06%