GFX Morning Commentary May 15th, 2013

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0170-1.0250

Today's expected range for the Canadian Dollar against the Euro is 1.3110-1.3180

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

The US Dollar continues to trade stronger across a wide band of currencies as it pushes higher on the back of the weaker Japanese Yen,  USD.JPY now trades near 103.00 which is a huge move over a short period of time.

The Dollar initially was  a bit weaker against the Pound as Bank of England Governor King in his last announcement before he retires stated that "a recovery was in sight" for the UK economy. King is talking about an increased growth rate of 0.5% for the 2nd quarter, hardly numbers that will set the world on fire, but I guess it is better than a recession. The Pound was not able to hold the strength and GBP.USD fell to trade at 1.5200 as I write.

And  speaking of recession both France and Germany reported dismal growth rates with France reporting that they have entered their third recession since 2008, not good news for a Socialist Government that likes to spend like a drunken sailor on shore leave. The Euro traded to new lows on these numbers against the Greenback and with the overall strength in the US Dollar EURO.USD looks like it will go lower.

The Canadian Dollar is much weaker against the Greenback, at the start of the week it looked like USD.CAD could trade back at parity and now it looks like it wants to head quickly towards 1.0250. You can see from this example just how quickly the currency markets turn when a new trend emerges. US Dollar sellers need to take advantage of this move by leaving some orders above 1.0200.

Up today we have a slew of US economic numbers out of the US including Industrial Production and Capacity Utilization both good measures of manufacturing in the economy, I will be looking to see if the current spate of weak numbers out of the US continues.

Long time readers will know that every year in May for some strange reason that I have not quite figured out I head off to a  far flung destination with 7 of my friends to whack a little white ball around some great field filled with all kinds of evil things like water holes and sand dunes. Once again as of tomorrow I will head off on another great adventure as we head to Malaga Spain, we were in Spain four years ago and I imagine that the economy will paint a very different picture from when we were last there. . I will return a week Monday the 27^th with my observations , Rich will publish the commentary in my absence

Have a great week

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.02			1.0128
CAD/USD		0.9803			0.9873
EUR/USD		1.2874			1.2954
EUR/CAD		1.3137			1.3121
STG/CAD		1.5525			1.547
AUD/CAD		1.0065			1.0041
CAD/JPY		100.66			100.4
CAD/CHF		0.9529			0.9454
CAD/HKD		7.5853			7.643
CAD/CNY		6.0226			6.0623
CAD/MXN		11.9485			12.0229
Commodities
Gold		$1,409.00			$1,427.00
OIL		$93.43			$94.65
US DOLLAR INDEX
P.CLOSE		83.7			83.35
OPEN		84.09			83.42