GFX Mornign FX Commentary February 27th, 2013

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0225-1.0310

Today's expected range for the Canadian Dollar against the Euro is 1.3430-1.3500

Today's expected range for the Canadian Dollar against Sterling is 1.5520-1.5600

The US Dollar is marginally weaker this morning as the sell-off in the Euro has for the moment been stopped, the Italian Central Bank was able to sell more than enough bonds at auction today to calm investor fears for the short-term. It is now up to the Italian parties to see if they can form an effective government which will keep austerity in place and give Euro investors some confidence. The Euro was also helped higher by the Business Confidence report that showed an improvement, all in all a good day so far for the Euro.

The Canadian Dollar is still stuck in the 1.0200 to 1.0300 range, I keep thinking that it wants to break above 1.0300 but at the moment it is having a tough time, the longer we hang around here and not break above 1.0300 the more the chances that USD.CAD will fall back below 1.0200

Up today we get some secondary data out of the US but barring any surprises USD.CAD should have a relatively quiet day as it sets up for the release tomorrow of the US GDP report for the 4^th quarter.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0264			1.0263
CAD/USD		0.9745			0.9744
EUR/USD		1.31			1.3074
EUR/CAD		1.3448			1.342
STG/CAD		1.5539			1.5542
AUD/CAD		1.0455			1.0515
CAD/JPY		89.26			89.55
CAD/CHF		0.906			0.9059
CAD/HKD		7.5365			7.5303
CAD/CNY		6.0639			6.0682
CAD/MXN		12.5214			12.5134
Commodities
Gold		$1,605			$1,590
OIL		$92.90			$92.21
Option Volatility
Canada
O/N		8.50%			5.95%
1 Week		7.94%			7.40%
1 Month		7.39%			6.85%