GFX Mornign FX Commentary June 13th, 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 1.3500-1.3575

Today’s expected range for the Canadian Dollar against Sterling is 1.5900-1.5975

The US Dollar is marginally weaker across most currency pairs with the exception once again being the Japanese Yen, Yen trading again dominated the currency markets with other currencies taking a back seat. With the World Bank announcing a downgrade of their global growth forecast Japanese investors once again sold off a lot of their foreign holdings and repatriated the Yen driving the value of the Yen higher and USD.JPY lower. The Nikkei plunged over 6.0% as well last night, these massive moves in the Nikkei must be crushing the everyday small Japanese investor. USD.JPY is now at the level(94.00) it was when the new Japanese government announced the massive stimulus programs designed to weaken the Yen and stimulate the Japanese export markets. I am betting Toyota, Honda and Nissan are just livid with the failure of the new Governor of the Bank of Japan and the Finance Ministry to live up to their promise of a weaker Yen, the next few days will be very interesting to see their reaction.

With the weaker US Dollar overnight the Loonie was able to make back some gains in an active market but it still trades in the overall 1.0150 to 1.0250 range, for the Loonie to really start to recover we will need to see a clean break of 1.0150 but so far that is proving elusive. Up today we get the release of the US Retail Sales report for May and some secondary Canadian data, we are expecting an increase in Retail Sales of 0.4% , it this number surprises we could see some enhanced volatility. The Dow Jones was down triple digits yesterday and is pointing lower to start the day, that market could use a strong Retail Sales report to bring it some good news.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0158			1.0178
CAD/USD		0.9844			0.9825
EUR/USD		1.3328			1.3279
EUR/CAD		1.3544			1.3519
STG/CAD		1.5914			1.5942
AUD/CAD		0.9726			0.9712
CAD/JPY		92.89			94.9
CAD/CHF		0.9067			0.9112
CAD/HKD		7.6213			7.6073
CAD/CNY		6.0359			6.0256
CAD/MXN		12.6331			12.5255
Commodities
Gold		$1,386.00			$1,376.00
OIL		$95.57			$95.54
US DOLLAR INDEX
P.CLOSE		81.16			81.26
OPEN		80.95			81.46