GFX Morning FX Commentary January 29th, 2013

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0025-1.0075    

Today’s expected range for the Canadian Dollar against the Euro is 1.3475-1.3575

Today’s expected range for the Canadian Dollar against the US Dollar is 1.5710-1.5780

The US Dollar is marginally stronger this morning as investor expectation rises that consumers are losing confidence in the US economy (report due out this morning) and that the US Federal Reserve will not make any changes to its stimulus program when it makes it interest rate announcement tomorrow. EURO.USD has traded to a high of 1.3460 before trading down to 1.3430, Sterling is also weaker with GBP.USD falling to trade at 1.5720.

The Canadian market was once again very quiet with USD.CAD now looking to settle in around the 1.0050 level as it awaits its next move, the longer we sit at this level the more resistance will build on the top side and eventually we will see USD.CAD move back down for a bit of a correction.

With only the US Consumer Confidence report due out today USD.CAD should trade in a narrow range ahead of tomorrow’s Federal Reserve announcement, where as I mentioned currency traders will be looking for any sign from the Fed that they are planning to exit their stimulus program. US Dollar sellers should want to leave their order between 1.0075 and 1.0100 and intra-day US dollar buyers should look to 1.0025 as a good level to buy some on a pullback. The Loonie remains weak against the Euro, Euro buyers should jump at the chance to buy some if you see it trade back towards 1.3475 today.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0061			1.0098
CAD/USD		0.9939			0.9902
EUR/USD		1.3428			1.3437
EUR/CAD		1.3512			1.357
STG/CAD		1.5838			1.5867
AUD/CAD		1.0509			1.0387
CAD/JPY		89.86			89.59
CAD/CHF		0.9183			0.9155
CAD/HKD		7.7059			7.6765
CAD/CNY		6.1874			6.164
CAD/MXN		12.6958
Commodities
Gold		$1,661			$1,656
OIL		$96.41			$95.83
Option Volatility
Canada
O/N		10.24%			9.36%
1 Week		7.23%			7.03%
1 Month		6.66%			6.55%