GFX Morning FX Commentary May 8th, 2013

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0010-1.0075

Today's expected range for the Canadian Dollar against the Euro is 1.3160-1.3240

Today's expected range for the Canadian Dollar against Sterling is 1.5540-1.5620

The US Dollar is weaker this morning as better than expected data in Germany and China have pushed equities higher and the US Dollar lower. Overnight China announced that the level of exports and imports increased more than expected in April while in Germany the Finance Ministry announced that Industrial Production in April was better than expected indicating that the recession in Germany is coming to an end, too bad that is not the case for the rest of Europe.

I have written many times over the past few months about the currency war that is going on at the moment, with many countries trying various method to weaken their currency so their exports become cheaper. Last night it was the Reserve Bank of New Zealand  that announced they had intervened in the currency markets to sell the NZD Dollar and weaken their currency, just the latest battle in the war to have the weakest currency, the race to the bottom is on and we in Canada just watch.

Once again a very quiet night for the Loonie, USD.CAD is at a standstill for the time being, I think we will see some volatility at some point today as traders start to balance their positions and get ready for Friday's Canadian Employment report. Ahead of that report I still favour a test of parity at some point but with the subdued ranges that we have been seeing it might not be today.

 

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0043			1.005
CAD/USD		0.9957			0.995
EUR/USD		1.3122			1.3115
EUR/CAD		1.3182			1.3176
STG/CAD		1.5568			1.5602
AUD/CAD		1.0241			98.76
CAD/JPY		98.47			1.023
CAD/CHF		93.58			98.76
CAD/HKD		7.7056			0.9352
CAD/CNY		6.112			7.7065
CAD/MXN		11.9853			6.122
Commodities
Gold		$1,452.00			$1,460.00
OIL		$95.50			$95.75
US DOLLAR INDEX
P.CLOSE		82.36			82.38
OPEN		82.14			82.12