GFX Morning FX Commentary January 28th, 2013

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0045-1.0125

Today's expected range for the Canadian Dollar against the Euro is 1.3530-1.3600

Today's expected range for the Canadian Dollar against Sterling is 1.5840-1.5920

The US Dollar is marginally stronger to start the new North American trading week, as Yen and Sterling dominated the currency trading markets. In Japan the Yen rallied as currency speculators bought the Yen on the belief that the currency may have become too weak too fast, In the UK a poor housing report have just reinforced the notion that the UK economy remains in recession, Mark Carney has a tough job ahead of him, that fact is certain. Carney was in Davos for World Economic Forum and stated that the world’s central banks have more room for fiscal stimulus and have room to let inflation grow.

The Canadian dollar is weaker this morning has it now sets up for a test of 1.0100, the Loonie continues to weaken against the EURO has EURO.CAD now trades well above 1.3500. The Loonie is certainly under pressure at the moment and US Dollar sellers still need to take advantage of this move, If you are a short-term US Dollar buyer look for pullback towards the 1.0050 level to leave some buy orders.

 

Up today we do have the US Durable Good December report but I would not expect for it have a lot of impact on today’s trading, look for USD.CAD to test the 1.0100 level at some point today or early this week, I would not expect it to push through on its first attempt but we should see a test at some point. If we move back towards 1.0050 today and get a stronger close for the Loonie, we may see the recent run for the USD taper off.
 

Have a great week

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0098			1.0041
CAD/USD		0.9902			0.9959
EUR/USD		1.3437			1.3442
EUR/CAD		1.357			1.3486
STG/CAD		1.5867			1.5851
AUD/CAD		1.0387			1.0489
CAD/JPY		89.59			90.48
CAD/CHF		0.9155			0.9167
CAD/HKD		7.6765			7.7073
CAD/CNY		6.164			6.1883
CAD/MXN
Commodities
Gold		$1,656			$1,666
OIL		$95.83			$96.32
Option Volatility
Canada
O/N		9.36%			6.45%
1 Week		7.03%			7.15%
1 Month		6.55%			6.18%