GFX Morning Commentary April 8th, 2013

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0120-1.0200    

Today's expected range for the Canadian Dollar against the Euro is 1.3220-1.3300

Today's expected range for the Canadian Dollar against Sterling is 1.5530-1.5610

The US Dollar is marginally weaker this morning against the Euro and Sterling while much stronger against the Yen as actions by the Bank of Japan continue to push the Yen much weaker. In Europe the Euro rose slightly off of Friday's close as the EU reported better than expected industrial production numbers, EURO.USD is back above 1.3000 but overall the weak bias for Euro remains in place.

The US Dollar index is getting a little of its recent strength from the developments in Korea, again this morning the North has ratcheted up the threats and the South stated the North is planning another nuclear test in the coming days. My concern with all of this is that the hardliners are running North Korea and will back themselves into a corner causing the situation to boil over. If the shooting does start then I look for the US dollar have a huge rally and equity markets to get hit hard.

The Canadian Dollar has recovered a bit from the big move on Friday which was brought on by the shocking jobs report that showed we lost over 50K jobs in March. I am actually surprised at just how resilient the Loonie is at the moment, I would have thought that the currency would have stayed above 1.0200 for a little longer. Given our AAA status as a country we may be seeing large amounts of capital flowing into the country for safe keeping from places like Europe and Korea (Asia in general).

Up today we may get some volatility around the Bank of Canada Business outlook survey report at 10:30 this morning, I will be particularly interested in what they have to save about the business environment in Canada given the recent jobs numbers. Bernanke also speaks this evening in Atlanta and the financial community will be looking for any hints as to what he will do with the US stimulus program.

Have a great week

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0169			1.0136
CAD/USD		0.9833			0.9865
EUR/USD		1.3022			1.2929
EUR/CAD		1.324			1.3108
STG/CAD		1.5569			1.5438
AUD/CAD		1.0581			1.0562
CAD/JPY		97.02			94.73
CAD/CHF		0.9183			0.9273
CAD/HKD		7.6153			7.6385
CAD/CNY		6.0989			6.1197
CAD/MXN		11.9519			12.1735
Commodities
Gold		$1,576.00			$1,551.00
OIL		$93.50			$92.77
US DOLLAR INDEX
P.CLOSE		82.63			82.83
OPEN		82.66			82.83

 

 

 

 

Have a great week

Mike