GFX Morning FX Commentary February 22nd, 2013

Good Morning

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0150-1.0235

Today’s expected range for the Canadian Dollar against the Euro is 1.3410-1.3500

Today’s expected range for the Canadian Dollar against Sterling is 1.5580-1.5675

The US Dollar was marginally weaker overnight as equities and the Euro rose slightly on better economic news out of the Euro-Zone. German business confidence rose to a 10 month high in Germany which helped push EURO.USD to trade at 1.3235 before dropping back. Stocks also picked up some strength on the speech by US Federal Reserve committee member Bullard stating global uncertainty remains high and the Fed policy will stay the course, the back tracking from the Fed announcement earlier this week has already started.

The Canadian Dollar remains weak and looks set to test the 1.0200 level, I am a bit surprised at this as both the Australian Dollar and the New Zealand Dollar moved higher last night, I would expect the Loonie to play catch up at some point so barring any surprises today I think I would expect USD.CAD to move lower at some point today. We do get the release of the Canadian CPI report for January and the Retail Sales report for December, it these numbers are really bad then we may see the Loonie take another hit, but all things being equal, I would expect a small move lower for USD.CAD at some point today.

Have a great weekend

Mike

 

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0188			1.0185
CAD/USD		0.9812			0.9815
EUR/USD		1.3172			1.3185
EUR/CAD		1.3423			1.3431
STG/CAD		1.5558			1.5537
AUD/CAD		1.0524			1.0447
CAD/JPY		91.45			91.18
CAD/CHF		0.9143			0.9145
CAD/HKD		7.59			7.5929
CAD/CNY		6.1214			6.1235
CAD/MXN		12.5093			12.5715
Commodities
Gold		$1,579			$1,572
OIL		$92.98			$94.05
Option Volatility
Canada
O/N		6.00%			6.50%
1 Week		7.40%			7.45%
1 Month		6.90%			6.92%