GFX Morning FX Commentary March 28th, 2013

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0125-1.0200

Today’s expected range for the Canadian Dollar against the Euro is 1.2980-1.3035

Today’s expected range for the Canadian Dollar against Sterling  is 1.5350-1.5425

The US Dollar is unchanged from our close yesterday as some calm returns to the Euro market now that the Cypriot banks have reopened and people have access to their money as limited as that it is. EURO.USD did jump a little as German Retail Sales for February came in better than expected but it was not able to hold the strength for long as German unemployment grew, Italian bond yields rose showing that investors want more return to hold Italian bonds and Moody’s reaffirmed Portuguese and Irish bonds as junk citing the uncertain future in Europe is hurting these economies. Further pain ahead for the Euro I think.

The Loonie is holding onto its recent gains as it hovers near the 1.0150 level, most of the action still continues around the Euro as EURO.CAD tries to break below the 1.3000 level. Up today we may get some additional volatility before the Easter long weekend, we get the release of the Canadian GDP report for January and the US 4^th quarter GDP report this morning. For the Canadian number we are expecting a rise of 0.1% and in the US we are looking for a revised number of

0.5%, not numbers that are going to set the world on fire but at least they are not negative.

Just a heads up that our office will be closed tomorrow but a lot of the world will be open so the Loonie will continue to trade on international currency markets, with a lot of banks closed if something happens in the markets you can get a lot of volatility so make sure you have your orders in early today, the Loonie might not move at all but we often see enhanced volatility on Canadian holidays and you want to take advantage of that. There won’t be a commentary on Monday as I am going to take an extended weekend and with most of Europe closed I don’t expect much of a trading range. I will be back online on Tuesday, have a great weekend.

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0158			1.0182
CAD/USD		0.9844			0.9821
EUR/USD		1.2798			1.2786
EUR/CAD		1.304			1.302
STG/CAD		1.5386			1.5395
AUD/CAD		1.0595			1.0624
CAD/JPY		92.76			92.67
CAD/CHF		0.9373			0.9352
CAD/HKD		7.6428			7.6053
CAD/CNY		6.1195			6.1021
CAD/MXN		12.1321			12.1642
Commodities
Gold		$1,603.40			$1,591
OIL		$96.72			$95.78
US DOLLAR INDEX
P.CLOSE		83.43			83.04
OPEN		83.26			83.33