GFX Morning FX Commentary January 15th, 2013

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is .9825-.9900

Today's expected range for the Canadian Dollar against the Euro is 1.3100-1.3175

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

The US Dollar is unchanged against the Euro this morning and Sterling, in Germany the Gross Domestic Product report for the 4th quarter showed that the largest economy in Europe shrunk last quarter due to the ongoing sovereign debt crisis. Things should turn around this quarter but just another reason why I am dubious about long-term Euro strength.

Nothing to report on the Canadian Dollar, it remains in very quiet trading ranges against the Greenback but is more volatile against the Euro and Sterling, if the Euro starts to weaken then look for USD.CAD to start to move back towards .9900

Up today we get the Producer Price Index and Retail Sales reports which should get the attention of currency traders. We are expecting retail sales  to have risen by 0.2%, any number much less than expectation should get equity markets very nervous in which case USD.CAD will start to rise. If the numbers come in as expected then USD.CAD will have another quiet day.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9852			0.9844
CAD/USD		1.0148			1.0156
EUR/USD		1.3342			1.3363
EUR/CAD		1.3147			1.3157
STG/CAD		1.5813			1.5829
AUD/CAD		1.0375			1.0382
CAD/JPY		89.4			90.47
CAD/CHF		0.9395			0.9311
CAD/HKD		7.8473			7.8532
CAD/CNY		6.3099			6.315
CAD/MXN		12.86			12.8537
Commodities
Gold		$1,678			$1,668
OIL		$94.01			$94.17
Option Volatility
Canada
O/N		5.39%			7.84%
1 Week		5.40%			5.30%
1 Month		5.25%			5.32%