GFX Morning FX Commentary January 17th, 2013

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is .9830-.9900

Today’s expected range for the Canadian Dollar against the Euro is 1.3170-1.3270

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

The US Dollar is stronger this morning as the results of the most recent Spanish bond auctions have given investors reason for optimism. This morning saw the Spanish Government auction off some 4.5B Euro worth of debt and it was so well receive that the cost to Spain dropped considerably. The Euro was also buoyed by comments from EU officials that the growth will pick up in the EU in 2013, this contradicts what Junker said about the Euro yesterday. This reinforces my point that verbal diarrhea from officials just clouds true markets conditions.

USD.CAD had another quiet night last night but as we said yesterday it continues to move a bit higher each session at the moment, we did set a new high for the week last night before the currency pair retreated again. EURO.CAD is also much higher again this morning as the strength of the Euro is really pushing the Loonie lower, if you do need Euro in the coming days I would start to pay close attention to the rate, you could be paying much more in the coming days if you wait.

We do get some secondary data out of the US today, I don’t think that they will have much effect on the currency market so look for USD.CAD to remain in a tight range with a possible small move higher at some point.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9867			0.9855
CAD/USD		1.0133			1.0145
EUR/USD		1.3369			1.3309
EUR/CAD		1.3194			1.3118
STG/CAD		1.5823			1.5805
AUD/CAD		1.0378			1.0398
CAD/JPY		90.6			89.74
CAD/CHF		0.9424			0.9427
CAD/HKD		7.8351			7.845
CAD/CNY		6.2954			6.3067
CAD/MXN		12.7739			12.8256
Commodities
Gold		$1,681			$1,679
OIL		$94.62			$93.47
Option Volatility
Canada
O/N		7.14%			5.40%
1 Week		5.69%			5.51%
1 Month		5.38%			5.31%