GFX Morning FX Commentary Nov 5th, 2012

Good Morning

Today’s expected range for the Canadian Dollar against the US Dollar is .9930-1.0000

Today’s expected range for the Canadian Dollar against the Euro is 1.2720-1.2800

Today’s expected range for the Canadian Dollar against Sterling is 1.5900-1.5980

The US Dollar is stronger to start the trading week as currency traders around the world start to position themselves ahead of the US Presidential election and the risks of Greece leaving the Euro look to be increasing. This week the Greek parliament votes on new austerity packages and it is not completely certain that they will pass, Prime Minister Samara pledged that this round oc cuts to wages and pensions will be the last as “Greek society won’t tolerate any more austerity measures” It certainly looks like the Greek situation is coming to a head, I am sure that these measures will pass but any future demands by the EU will be met indifference by Greek law makers and could push Greece into default. Either way the Euro is trading with a weak tone at the moment and will continue to do so for a few days.

The Canadian Dollar is marginally weaker as it continues  to trade within the .9900 to 1.000 trading range in quiet trading conditions, waiting for a breakout on either side. UP today we have some manufacturing data out of the US and housing data out of Canada but these numbers will most likely be ignored as equity markets and currency markets use the next two days for the results of the US Presidential election tomorrow night. I will put some thoughts on possible ramifications for the Loonie in tomorrow’s commentary but for now the election results seems to hinge on a couple of swing states where the candidates are campaigning hard.

Have a great week

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9969			0.9974
CAD/USD		1.0031			1.0026
EUR/USD		1.2787			1.2878
EUR/CAD		1.2748			1.2848
STG/CAD		1.5924			1.6059
AUD/CAD		1.0315			1.0347
CAD/JPY		80.22			80.46
CAD/CHF		0.946			0.9388
CAD/HKD		7.7524			7.7476
CAD/CNY		7.7524			6.2525
CAD/MXN		13.1021			13.0562
Commodities
Gold		$1,680			$1,709
OIL		$84.89			$86.39
Option Volatility
Canada
O/N		9.35%			7.29%
1 Week		6.94%			7.45%
1 Month		6.54%			6.49%