GFX Morning FX Commentary July 6th, 2012

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0100-1.0200

Today's expected range for the Canadian Dollar against the Euro is 1.2550-1.2675

Today's expected range for the Canadian Dollar against Sterling is 1.5760-1.5900

The US Dollar is stronger this morning as the economic comments expressed by ECB Governor Draghi yesterday at his press conference counted more than the interest rate cuts. Supporting the US dollar also was comments from the People's Republic Bank of China spokesperson that it is unlikely China will hit their 10% growth target this year, poorer than expected manufacturing data out of Europe and higher borrowing costs for Spain. Clearly investors are very worried about the Global economy and once again have pushed equities lower and the US Dollar higher.

Today's trading will be dominated by the US and Canadian employment reports where in the US we are expecting another 100k jobs to have been created and an unemployment rate of 8.2%, in Canada we are expecting 5K jobs to have been created in June, anything less than expectation with these numbers should push equities lower and the US Dollar higher.

The Canadian Dollar remains on the sidelines against the US Dollar as it continues to strengthen slightly, most of the action for the Loonie is against the Euro and Sterling where it continues to make new highs.

As mentioned  the direction of USD.CAD today will come from the US and Canadian  employment reports and of course the direction of equity markets on the back of those numbers. A strong showing from the US will push equities higher and USD.CAD lower, a very poor showing will push USD.CAD back towards 1.0200

Have a great weekend

Mike

GFX Morning Currency Rates
Friday July 6th, 2012
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0153			1.0132
CAD/USD		0.9849			0.9869
EUR/USD		1.5339			1.2506
EUR/CAD		1.2566			1.2624
STG/CAD		1.578			1.5761
AUD/CAD		1.0417			1.0416
CAD/JPY		78.64			78.56
CAD/CHF		0.9532			0.9474
CAD/HKD		7.6302			7.6476
CAD/CNY		6.3658			6.356
CAD/MXN					13.16
Commodities
Gold		$1,592			$1,618.93
OIL		$85.78			$88.13
Option Volatility
Canada
O/N		9.57%			14.05%
1 Week		9.07%			9.19%
1 Month		8.65%			8.72%

Today's Economic Calendar

USA
Employment Report for June (08:30)

CANADA
Employment Report for June (08:30)
Building Permits for May (8:30)