GFX Morning FX Commentary January 8th, 2013

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is .9820-.9900

Today's expected range for the Canadian Dollar against the Euro is 1.2880-1.2950

Today's expected range for the Canadian Dollar against Sterling is 1.5810-1.5875

The US Dollar is marginally stronger this morning in very quiet currency markets as export and unemployment numbers out of the Euro Zone were weaker than expected  pushing the Euro lower.  In the overall EU zone,  unemployment has reached a record level  of 11.8% while in Spain and Greece unemployment has reached over 26%, I would guess that youth unemployment is up near 40%, just a miserable situation. Sterling is also lower this morning as UK December Retail Sales came in worse than expected, clearly Europe is far behind the US and Canada in terms of an active recovery.

Nothing new on the Canadian Dollar front, the Loonie is unchanged from yesterday and continues to lag in volatility behind other currencies, we are still stuck in recent trading ranges  and nothing in the immediate future looks to break that trading pattern. There are no economic releases of note today so once again I look for a narrow trading range with little activity.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9844			0.9871
CAD/USD		1.0156			1.0129
EUR/USD		1.3124			1.3036
EUR/CAD		1.2921			1.287
STG/CAD		1.5853			1.5855
AUD/CAD		1.0545			1.0354
CAD/JPY		88.85			88.98
CAD/CHF		0.9355			0.9389
CAD/HKD		7.8527			7.8306
CAD/CNY		6.3195			6.3061
CAD/MXN		12.9599			12.9456
Commodities
Gold		$1,655			$1,654
OIL		$93.68			$92.64
Option Volatility
Canada
O/N		7.05%			7.50%
1 Week		5.90%			5.95%
1 Month		5.40%			5.45%