GFX Morning FX commentary November 29th, 2012

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is .9870-.9950

Today's expected range for the Canadian Dollar against the Euro is 1.2830-1.2900

Today's expected range for the Canadian Dollar against Sterling is 1.5840-1.5920

My apologies for the lack of commentary yesterday, the email service was down all day and I was unable to send it out. If this ever happens and you want to read the commentary, you can always access it at our blog www.gfxpartners.blogspot.com , I also post the commentary there as well as emailing it out.

The US Dollar is marginally weaker this morning as equity markets rallied on comments from Republican house speaker John Boehner that there is a strong likelihood that they will reach a deal on spending cuts and tax increases with the President sooner than later. Once again the rhetoric on the Fiscal Cliff continues and financial markets are hanging on every comment, I cannot put any faith in these comments as something negative could be said by any US lawmaker that would just turn the markets around, this rhetoric will go on for a few weeks yet and will add volatility to global markets

Euro strength was also helped by better than expected Spanish and Italian bond auctions which were well received by investors, with Greece moving to the sidelines we may start to see the Euro crisis fade from the front pages. The picture is still very gloomy as German unemployment rose again last month, with German national elections due next year Angela Merkel should not make any long-term plans to be in government and then what happens is anybody’s guess.

With the weakness in the US Dollar overnight the Loonie was able to pullback some strength but USD.CAD still trades in the .9900 to .9950 trading range, with US GDP due out today we may see that change. We are expecting an increase in US growth of 2.8%, if the number is better than expected then equities will jump and USD.CAD will fall below .9900, if it is below expectation just the opposite will happen and USD.CAD will jump above the .9950 level.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9914			0.9948
CAD/USD		1.0086			1.0052
EUR/USD		1.2986			1.2901
EUR/CAD		1.2878			1.2836
STG/CAD		1.5882			1.5912
AUD/CAD		1.0371			1.0389
CAD/JPY		82.76			82.28
CAD/CHF		0.9344			0.937
CAD/HKD		7.7937			7.7689
CAD/CNY		6.28			6.252
CAD/MXN		13.059			13.1446
Commodities
Gold		$88			$87
OIL		$1,726.00			$1,738.00
Option Volatility
Canada
O/N		7.14%			7.24%
1 Week		5.27%			5.07%
1 Month		5.14%			5.03%