GFX Morning FX Commentary June 5th, 2013

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0300-1.0390

Today’s expected range for the Canadian Dollar against the Euro is 1.3500-1.3580

Today’s expected range for the Canadian Dollar against Sterling is 1.5860-1.5950

The US Dollar is for the most part unchanged this morning, it is slightly stronger against the Yen but a little weaker against Sterling and the Euro. The big loser was once again the Aussie Dollar that dropped over 100 points with AUD.USD falling to .9950 and AUD.CAD falling to .9880. All of this was on the back of Japanese Prime Minister Abe giving a disappointing speech which caused investors to lose confidence in the Japanese recovery, on the speech the Nikkei plunged almost 4% and the regional currencies all lost ground. Once again we see that investors do not like uncertainty and the Japanese Government in one speech just created lots of it.

The Euro is slightly stronger against the Greenback as the EU first quarter GDP report showed the economy shrank 0.2% which was in line with expectation, if the Euro is to hold onto its strength it will need to drastically improve these results going forward.

Considering that the other commodity currencies were smashed last night the Canadian Dollar is hanging in quite well with USD.CAD only rising by a few points from our close last night. I still get the sense that the Loonie is only one bad economic report from losing ground and trading above 1.0400 but right now it is still doing quite well. Once again US Dollar buyers need to be ready with their orders if we trade near 1.0300

Up today we get some secondary US and Canadian data including the ADP private employment report and Canadian building permits. We are expecting US private employers to have created 160K new jobs last month, normally this report does not correlate to the Department of Labour report due out Friday but if this morning’s report does not meet expectation then we may see some added volatility.

Have a great day.

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.035			1.0319
CAD/USD		0.9662			0.9625
EUR/USD		1.3065			1.3084
EUR/CAD		1.3524			1.3504
STG/CAD		1.5893			1.5785
AUD/CAD		0.9898			0.9972
CAD/JPY		96.21			97.02
CAD/CHF		0.9147			0.9187
CAD/HKD		7.4768			7.5
CAD/CNY		5.9174			5.9375
CAD/MXN		12.311			12.3187
Commodities
Gold		$1,398.00			$1,400.00
OIL		$93.66			$92.93
US DOLLAR INDEX
P.CLOSE		82.78			82.72
OPEN		82.78			82.78