GFX Morning Commentary January 7th, 2013

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is .9840-.9930

Today's expected range for the Canadian Dollar against the Euro is 1.2840-1.2920

Today's expected range for the Canadian Dollar against Sterling is 1.5830-1.5900

The US Dollar is marginally stronger to start the first full week of the new year as Euro traders continue to monitor the situation in Spain and get ready for the European Central Bank interest rate policy announcement later this week. Spain must go back to the bond market this week to raise more funds, any sign of weakness in that auction will result in Euro weakness. Euro investors are also expecting Governor Draghi to hint at further interest rate cuts by the ECB which should bring more volatility to the currency markets.

The Canadian Dollar is unchanged from Friday's close and continues to hold onto the strength it saw from the great employment report on Friday. Canada created some 50k new jobs last month which surprised the markets as most bank economists predicted that job growth would be flat.

We do not have much today in the way of economic releases, we only have the Ivey purchasing managers index out of Canada and I don’t think that will be enough to move the market, look for USD.CAD to continue to trade between .9850 and .9950 for the short-term as it awaits the next big development.

 

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9871			0.9919
CAD/USD		1.0129			1.0081
EUR/USD		1.3036			1.2998
EUR/CAD		1.287			1.2896
STG/CAD		1.5855			1.589
AUD/CAD		1.0354			1.0322
CAD/JPY		88.98			88.92
CAD/CHF		0.9389			0.9373
CAD/HKD		7.8306			7.8088
CAD/CNY		6.3061			6.2764
CAD/MXN		12.9456			12.9499
Commodities
Gold		$1,654			$1,630
OIL		$92.64			$91.69
Option Volatility
Canada
O/N		7.50%			7.59%
1 Week		5.95%			5.97%
1 Month		5.45%			5.48%