GFX Morning FX Commentary April 19th, 2013

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0220-1.0280

Today’s expected range for the Canadian Dollar against the Euro is 1.3400-1.3480

Today’s expected range for the Canadian Dollar against Sterling is 1.5710-1.5800

The US Dollar is marginally weaker this morning as the Euro and Sterling have been able to jump higher on the  back of a weaker yen. Japanese Finance Minister Taro Aso stated that Japan’s stimulus policies are not an issue for the G-20 Finance ministers and Central Bankers meeting in Washington at the moment. This appears to give support to Japans plan to weaken their currency in order to improve their export economy, the currency war continues unabated. This announcement helped to boost the commodity carry trade as Japanese investors will borrow Yen at very cheap rates, sell that Yen and buy Aussie and New Zealand Dollars to take advantage of higher interest rates in those countries. The Canadian Dollar has also benefited overnight as CAD.JPY jumped form a low of 95.00 to trade at 97.10, if you are looking to buy Yen it keeps getting.

Unfortunately the Canadian Dollar could not translate the gains made against the Yen into gains against the US Dollar, USD.CAD still remains mired in narrow overnight trading ranges with little focus from currency traders. Up today we do get the release of the Canadian CPI report for March and the Wholesale Trade report for February which may bring some volatility to the currency pair. Since the Bank of Canada stated this week that inflation is under control if we were to get a surprisingly bad number then I think we would see some fireworks but if the number comes in as expected then I think we will still see a slow grind higher for USD.CAD.

Have a great weekend

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0241			1.0236
CAD/USD		0.9765			0.9769
EUR/USD		1.3084			1.3059
EUR/CAD		1.3403			1.337
STG/CAD		1.5717			1.5675
AUD/CAD		1.0594			1.0572
CAD/JPY		96.8			96.05
CAD/CHF		0.9076			0.9093
CAD/HKD		7.5585			7.562
CAD/CNY		6.0294			6.0356
CAD/MXN		11.933			11.909
Commodities
Gold		$1,412.00			$1,393.00
OIL		$88.68			$87.67
US DOLLAR INDEX
P.CLOSE		82.64			82.77
OPEN		82.58			82.65