GFX Morning Commentary January 14th, 2013

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is .9830-.9880

Today's expected range for the Canadian Dollar against the Euro is 1.3120-1.3200

Today's expected range for the Canadian Dollar against Sterling is 1.5800-1.5875

The US Dollar is marginally weaker this morning as comments by a US Federal Reserve committee have pushed the Euro higher this morning. Overseas markets were for the most part quiet as it was a holiday in Japan but in Hong Kong a speech by Fed member Fred Evans called for stimulus to remain in place much longer than may be presently considered, he argued that removing stimulus in the US economy too early may prove damaging, EURO.USD traded above 1.3400 for short while on this report.

In Japan, Yen was again weaker as that country tries to devalue its currency, the new prime minister called for the appointment of a very aggressive new Bank of Japan President, one that will undertake an aggressive expansionary program for the economy.

The Canadian Dollar continues to trade in tight overnight ranges with no real sense of direction, markets today will be looking to US Federal Reserve Chairman Ben Bernanke's first speech of the year for his views on the economy and the current stimulus program and how he plans to unwind it, any surprises should get volatility moving again.

For today I have started to narrow my expected ranges for the Loonie as USD.CAD has not been moving that much, most activity for the Loonie over recent days has been against the Euro and Sterling. We do get the Bank of Canada business outlook survey today but I am not expecting any great revelations to move the market.

Have a great week

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9844			0.9833
CAD/USD		1.0156			1.0167
EUR/USD		1.3363			1.3252
EUR/CAD		1.3157			1.3033
STG/CAD		1.5829			1.5846
AUD/CAD		1.0382			1.0394
CAD/JPY		90.47			90.05
CAD/CHF		0.9311			0.932
CAD/HKD		7.8532			7.8613
CAD/CNY		6.315			6.3181
CAD/MXN		12.8537			12.859
Commodities
Gold		$1,668			$1,669
OIL		$94.17			$93.15
Option Volatility
Canada
O/N		7.84%			5.50%
1 Week		5.30%			5.40%
1 Month		5.32%			5.35%