GFX Morning FX Commentary April 3rd, 2013

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0100-1.0175

Today's expected range for the Canadian Dollar against the Euro is 1.2980-1.3050

Today's expected range for the Canadian Dollar against Sterling is 1.5340-1.5425

I hope everyone that celebrates the holidays had a great Easter and Passover.

The US Dollar is marginally stronger this morning as poor employment and manufacturing reports out of the EU have weighed on the Euro. This morning the Euro was hit on an employment report that showed unemployment has risen to 12% with some 19 million unemployed across the region, this picture will not get any better quickly as a manufacturing report showed that EU manufacturing is also on the decline, in all of this EURO.USD fell to trade at 1.2850 its lowest level in weeks. Market focus will now shift to the ECB meeting on interest rates later this week to see if they will reduce the already low interest rate.

Sterling took the biggest hit of the night as GBP.USD fell to trade at 1.5150, its lowest level since it rebounded from trading below 1.4900 a few weeks back. It was a very poor UK manufacturing report that pushed Sterling lower, it appears there is not much demand for UK goods in Europe at the moment…go figure, there is not much demand for any goods in Europe at the moment, we look for Sterling to remain weak into the first quarter. It appears the Carney’s have a tough job ahead of them, Mark has to figure out the economy in the UK pretty quick and Mrs. Carney needs to find a home on their meager budget in London.

The Canadian Dollar is marginally stronger this morning  despite the stronger US Dollar overnight, the Loonie has been doing well over the past few days holding its own against the Greenback but still trades in narrow intra-day ranges. Up today we get some secondary US data out so for the most part I am not expecting any surprises, I would expect the pressure to be on the Loonie to continue to strengthen towards the 1.0100 level at some point over the next few days. I still favour US dollar buyers picking up some US Dollars on forward contracts at these levels as there is still lots of uncertainty in the world’s financial markets and we can see a turnaround very quickly.

Have a great day.

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0128			1.0165
CAD/USD		0.9873			0.9838
EUR/USD		1.2854			1.2816
EUR/CAD		1.2999			1.3024
STG/CAD		1.5384			1.5474
AUD/CAD		1.0606			1.0591
CAD/JPY		92.06			92.18
CAD/CHF		0.934			0.9339
CAD/HKD		7.6429			7.6153
CAD/CNY		6.1182			6.1045
CAD/MXN		12.197			12.1499
Commodities
Gold		$1,596.00			$1,598.00
OIL		$97.00			$96.76
US DOLLAR INDEX
P.CLOSE		82.89			83.17
OPEN		82.89			83.12