GFX Morning FX Commentary April 19th, 2013

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0225-1.0300

Today's expected range for the Canadian Dollar against the Euro is 1.3440-1.3520

Today's expected range for the Canadian Dollar against Sterling is 1.5600-1.5675

The US Dollar is marginally stronger this morning as the currency markets react to poor economic news out of the EU and England. In the UK the pound is weaker on a poor employment report and also the report from the last Bank of England meeting that showed there is a real division on whether the bank should increase the stimulus program or keep it as is, Governor Carney is walking into a real hornet’s nest,  GBP.USD fell to trade at 1.5240 as I write. In Europe the IMF downgraded the growth rate of the economy to predict it will contract by 0.3% instead of the  0.2% that they previously cited, a business confidence report in Germany also showed great concern about that countries economy, overall no good news coming out of Europe. This morning Slovenia was going to the bond market to try and raise 500 Million Euro, if that auction does not go well then we could see Slovenia line up at the bail-out table in the coming weeks.

The Canadian Dollar is marginally weaker as the overall slow grind higher for USD.CAD continues. Canadian dollar traders will be watching the results of the Bank of Canada to see how they are reacting to a slowdown in the Canadian economy. Nobody expected them to move the interest rate but if I was a betting man I think they will indicate that the economy is indeed slowing  and they will try and talk the Canadian Dollar down to try and help out exporters.

I will send out an update shortly after the announcement.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0242			1.0221
CAD/USD		0.9763			0.9784
EUR/USD		1.3158			1.3105
EUR/CAD		1.3478			1.3403
STG/CAD		1.5645			1.3654
AUD/CAD		1.0606			1.0606
CAD/JPY		95.6			95.7
CAD/CHF		90.12			0.9071
CAD/HKD		7.5562			7.576
CAD/CNY		6.0221			6.0465
CAD/MXN		11.907			11.9444
Commodities
Gold		$1,382.00			$1,390.00
OIL		$88.17			$88.43
US DOLLAR INDEX
P.CLOSE		81.88			82.49
OPEN		82.15			82.27