GFX Morning FX Commentary June 3rd, 2013

Good Morning,

Today’ expected range for the Canadian Dollar against the US Dollar is 1.0320-1.0380

Today’ expected range for the Canadian Dollar against the Euro is  1.3440-1.3520

Today’ expected range for the Canadian Dollar against Sterling is 1.5770-1.5850

The US Dollar is marginally weaker this morning as once again the Nikkei Stock exchange was lower pushing the Yen higher. In China, manufacturing data fell to its lowest level since September, I think this weighed on all Asian Equity markets and once again has investors nervous.

EURO.USD fell to trade at 1.2990 in quiet trading markets as the Europe and the UK get ready for interest rate announcement later this week. Markets should be fairly quiet during the run up to Friday as that is when we get both the US and Canadian Employments reports, numbers which could set the tone for the month.

The Canadian Dollar is marginally stronger in a narrow overnight trading range as it settles in above 1.0300 awaiting its next move. I still favour a test higher for USD.CAD as there is just too much uncertainty in the markets at the moment and given the weakness in the other commodity currencies the Loonie may be vulnerable to trade weaker in short-term. If I was a US Dollar buyer I would look to make sure I had some forward contracts on anytime USD.CAD get near 1.0300.

Up today we do get some secondary US data to start June, we should see more positive news out of the US so look for the US to trade stronger but in subdued trading ranges, if the equity markets spike a lot higher then we could see USD.CAD threaten 1.0400

Have a great week

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0351			1.0344
CAD/USD		0.966			0.9667
EUR/USD		1.3013			1.2994
EUR/CAD		1.3472			1.3443
STG/CAD		1.579			1.5729
AUD/CAD		0.9988			0.992
CAD/JPY		0.9694			97.2
CAD/CHF		0.9237			0.9218
CAD/HKD		7.4799			7.4848
CAD/CNY		5.9205			5.9276
CAD/MXN		12.3667			12.4759
Commodities
Gold		$1,395.00			$1,411.00
OIL		$92.43			$93.18
US DOLLAR INDEX
P.CLOSE		83.31			83.05
OPEN		83.25			83.3