GFX Morning FX Commentary June 11th, 2013

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0210-1.0275

Today’s expected range for the Canadian Dollar against the Euro is 1.3580-1.3650

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

The US Dollar is mixed this morning as it is marginally weaker against the Euro, Sterling and the Yen but once again stronger against  the Commodity currencies. In japan the Yen is much stronger against the Greenback as the Bank of Japan did not announce any new economic  stimulus measures which would  have the effect of supporting the economy but weakening the Yen (which would of course support the export Japanese market). I think the markets looked at this as a sign that the BOJ is comfortable with the current value of the Yen and are taking a wait and see attitude, currency traders are closing out or reversing their short Yen positions and that is causing the volatility in USD.JPY.

The other commodity currencies, Aussie and New Zealand are much weaker again this morning as the Aussie Dollar dropped to its lowest level since 2010 on some poor housing data. In the past few months the Australian Dollar has dropped over 10% in value against the US and Canadian Dollars so clearly a currency that is under considerable pressure, when you look at this volatility the Canadian Dollar is a superstar.

The Canadian Dollar while still quite resilient succumbed to the pressure last night and gave back some strength to the US Dollar as the weakness in the Aussie and Kiwi(New Zealand Dollar) dragged the Loonie lower. This goes to my point yesterday, it is all well and good that the Loonie can jump higher on the great jobs report but considering the unrest in the global economy it will be difficult for the Loonie to hold onto any strength for sustained periods,  US dollar buyers need to be ready to jump in anytime we see the Loonie have a rally, waiting for parity as a magic level could be very costly.

Up today the Dow futures are pointing down over 100 right now so it will be a crap day on Wall Street,  we do get the some secondary US trade data but for the most part the economic calendar is quiet. I think we could see a bit of a move lower for USD.CAD this morning but I would not expect a great trading range, intraday buyers of US should now leave their orders at 1.0200

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0239			1.0195
CAD/USD		0.9766			0.9809
EUR/USD		1.3279			1.3221
EUR/CAD		1.3607			1.3483
STG/CAD		1.5729			1.5843
AUD/CAD		0.9564			0.962
CAD/JPY		0.9454			96.8
CAD/CHF		0.905			0.9186
CAD/HKD		7.5567			7.5909
CAD/CNY		5.9874			6.0129
CAD/MXN		12.7194			12.5687
Commodities
Gold		$1,368.00			$1,380.00
OIL		$95.16			$95.63
US DOLLAR INDEX
P.CLOSE		81.92			81.93
OPEN		81.66			82.15