GFX Morning Commentary January 9th, 2013

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is .9840-.9920

Today's expected range for the Canadian Dollar against the Euro is 1.2875-1.2950

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

The US Dollar is marginally stronger this morning as EURO.USD has dropped a little on the expectation that the ECB will keep interest rates at 0.75% when they make their policy announcement tomorrow and on poor Industrial Production numbers out of Germany. The big mover overnight was the Japanese Yen where that new government urged the central bank to raise their inflation target to 2% a move which would further weaken the Yen. The new Japanese government is hell-bent on weakening the Yen right out of the gate which will have the effect of making their exports cheaper on world markets.

The Canadian Dollar continues to trade within recent ranges with little movement over the past few sessions and with only Canadian housing data due out today I am not expecting much of a trading range today. We will breakout eventually buy for now US Dollar buyers may want to keep looking at booking some forwards, US Dollar sellers need to look at .9900 as good short-term level to get some extra value.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9876			0.9844
CAD/USD		1.0124			1.0156
EUR/USD		1.3054			1.3124
EUR/CAD		1.2895			1.2921
STG/CAD		1.5841			1.5853
AUD/CAD		1.0366			1.0545
CAD/JPY		88.26			88.85
CAD/CHF		0.9371			0.9355
CAD/HKD		7.8273			7.8527
CAD/CNY		6.3			6.3195
CAD/MXN		12.9708			12.9599
Commodities
Gold		$1,663			$1,655
OIL		$93.04			$93.68
Option Volatility
Canada
O/N		7.00%			7.05%
1 Week		5.85%			5.90%
1 Month		5.40%			5.40%