GFX Morning FX Commentary December 6th, 2012

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is .9880-.9940

Today's expected range for the Canadian Dollar against the Euro is 1.2940-1.3010

Today's expected range for the Canadian Dollar against Sterling is 1.5850-1.6025

The US Dollar is unchanged this morning as currency markets awaited interest rate decisions from the Bank of England and the European Central Bank. This morning both institutions held their interest rates at present levels and the Bank of England announced a pause in their quantative easing program, so they will actually stop buying bonds for the time being. These announcements were as expected and markets will await ECB Governor Draghi’s press conference later this morning.

Last night the Reserve Bank of New Zealand kept interest rates steady, the NZ Dollar (kiwi as it is referred to) was able to get a small boost. It certainly looks the world over that there is no appetite for higher interest rates.

There was some positive signs coming out of Washington as it looks like some Republicans were starting to come around to the President’s plan to raise taxes on the wealthiest Americans. These fiscal cliff discussions will go right down to the wire so look for the rhetoric to heat up in the coming weeks.

The Canadian Dollar is unchanged from yesterday's Toronto close as currency traders awaited the results from  the interest rate announcements and the US and Canadian employment reports due out tomorrow. Once again we had a very narrow overnight range for the Loonie and we continue to trade within recent ranges. For the short-term I still favour a move lower to break below the .9900 level but I do not think it will be a big move if it happens today.

 

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9912			0.992
CAD/USD		1.0088			1.008
EUR/USD		1.3065			1.0386
EUR/CAD		1.2953			1.2989
STG/CAD		1.5967			1.5984
AUD/CAD		1.0396			1.0386
CAD/JPY		83.09			82.81
CAD/CHF		0.9347			0.9354
CAD/HKD		7.7965			7.7906
CAD/CNY		6.28			6.2725
CAD/MXN		13.0359			13.0523
Commodities
Gold		$1,694			$1,703
OIL		$87.90			$88.58
Option Volatility
Canada
O/N		6.00%			6.20%
1 Week		5.00%			5.00%
1 Month		4.80%			4.80%