Daily FX Commentary, January 24, 2012

Expected Range: 1.0085 – 1.0155
Gold $1668.3
Oil $99.33
 
USD/Cad is a bit higher overnight as the overall ‘risk’ trade softens. The Euro is being whipsawed as markets are sensitive to further delays in the Greek debt talks, while getting strong economic data in the form of higher than expected PMI numbers across the board (save France). Overseas equity markets are down and the trend is continuing across time zones to North America.
The IMF President Christine Lagarde was in the press yesterday telling Germany that she needs to give more € to the ESFS and back down from its position of more aggressive and continued austerity on the debt laden countries. She also pointed out that the IMF will not be giving any money to Europe as it has enough money sloshing around the Euro zone to fix their own debt problems, as the IMF’s funds are needed to help other nations around the world dealing with economic shocks that are out of their control.
In other news Greece has published a list of some 4,000 alleged tax evaders. The top offender owing nearly €1 billion, the list seems to be comprised of mostly owners of business’ that have gone out of business. I wonder if it was their intention to show that this Greek issue of debt nonpayment really is a Greek phenomenon that starts at the top and goes all the way down the line. Somebody pass the Ouzo.
Today marks the start of the FOMC’s two day meeting, markets will also be watching tonight’s State of the Union speech from President Obama.
This morning’s Canadian retail sales are expected to be up +.02%, this isn’t expected to move markets as our Loonie is at the mercy of larger global macro issues at the moment.
 
 
I can resist everything except temptation.
Oscar Wilde