GFX Morning FX Commentary April 12th, 2013

Good Morning

Today's expected range for the Canadian Dollar against the US Dollar is 1.0080-1.0150

Today's expected range for the Canadian Dollar against the Euro is 1.3200-1.3270

Today's expected range for the Canadian Dollar against Sterling is 1.5540-1.5620

The US Dollar is stronger this morning as renewed fears that the credit crisis in Europe is growing have hurt the Euro. EU Finance Ministers are meeting in Dublin today to discuss the banking crisis in Slovenia and to consider requests from Cyprus, Ireland and Portugal. Cyprus is asking for more money while Ireland and Portugal are asking for more time to pay back their loans, EURO.USD has dropped to trade back near 1.3000 after trading stronger during the week.

Sterling had a better night than the Euro has reports showed that housing prices there increased for the seventh month in a row, with easier access to home mortgages Britons are responding by purchasing more homes. This should give a boost to the UK economy but with the ongoing problems in Europe we still favour a weaker Sterling in the medium-term.

With the overnight strength in the US Dollar USD.CAD moved back higher overnight but continues trading back and forth in uninspiring trading ranges. We may get some Canadian Dollar volatility today as we get the release of the  US Retail Sales report for March and some other secondary data. We are expecting no change in the month over month value of retail sales, I have noticed that over the past week or two the US data is starting to soften a bit, if this number is worse than expected we will most likely see equities get hit hard and the USD.CAD trade lower again.

Have a great weekend

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0117			1.0087
CAD/USD		0.9884			0.9913
EUR/USD		1.3065			1.3126
EUR/CAD		1.3221			1.3243
STG/CAD		1.5557			1.5526
AUD/CAD		1.0653			1.067
CAD/JPY		98.05			0.9863
CAD/CHF		0.9201			0.92
CAD/HKD		7.65			7.6729
CAD/CNY		6.1186			6.1397
CAD/MXN		11.9368			11.9904
Commodities
Gold		$1,547.00			$1,558.00
OIL		$92.43			$94.53
US DOLLAR INDEX
P.CLOSE		82.35			82.45
OPEN		82.44			82.22