GFX Morning FX Commentary April 9th, 2013

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0125-1.0200

Today's expected range for the Canadian Dollar against the Euro is 1.3210-1.3280

Today's expected range for the Canadian Dollar against Sterling is 1.5500-1.5575

The US Dollar is marginally weaker this morning in quiet overnight trading conditions. Reports out of China that inflation was not as high as expected helped push the US Dollar a little lower, in the UK Sterling was buoyed by a stronger than expected industrial production report, while in the rest of Europe the Euro traded a little lower on a report out of Germany that showed exports are declining in that country.

The Euro should remain under pressure as it looks like Slovenia will be the next European country to need to bail-out their banks. Given the recent events in Cyprus where account holders had to take a haircut on their deposits I will watch with interest to see if the same template is also used in Slovenia. Elsewhere in Europe, the Portuguese high court struck down the countries austerity measures forcing the government to say that they will find the cuts elsewhere, look for more unrest in that country.

The Canadian Dollar has held onto its modest gains from yesterday as it continues to try and find the strength it lost on Friday in quiet trading markets, the Lonnie is proving to be quite resilient as even a very poor jobs report could not knock it down. With only some secondary data due out of the US and Canada this morning  I am not expecting a big trading range for USD.CAD, most of the currency trading will continue to focus on the EURO. Look for the Loonie to rally a bit more today with a possible test this week of 1.0100 at some point.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0161			1.0169
CAD/USD		0.9841			0.9833
EUR/USD		1.3034			1.3022
EUR/CAD		1.3247			1.324
STG/CAD		1.554			1.5569
AUD/CAD		1.0629			1.0581
CAD/JPY		97.3			97.02
CAD/CHF		0.9204			0.9183
CAD/HKD		7.6189			7.6153
CAD/CNY		6.1016			6.0989
CAD/MXN		11.9829			11.9519
Commodities
Gold		$1,571.00			$1,576.00
OIL		$93.62			$93.50
US DOLLAR INDEX
P.CLOSE		82.89			82.63
OPEN		82.69			82.66