GFX Morning Commentary October 11th, 2013

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0360-1.0460

Today's expected range for the Canadian Dollar against the Euro is 1.4070-1.4150

Today's expected range for the Canadian Dollar against Sterling is 1.6570-1.6650

The US Dollar is marginally stronger this morning as talks between Republicans and the President seem to be gathering momentum, if they get a deal in the next few days  you should continue to see both the Dollar and stocks break higher.

The Canadian Dollar is a bit worrisome at the moment, given that stocks are moving ahead on the potential deal in Washington I would have thought that the Loonie would have recovered a little with USD.CAD maybe dropping back to 1.0350 but we have not seen this so far. If we get a very poor Canadian jobs report this morning then USD.CAD could easily trade up to 1.0450, US Dollar buyers should keep this in mind.

For the Canadian Employment report this morning we are expecting 15,000 new jobs to have been created and the unemployment rate to hold steady at 7.1%. What worries me is the bank economists have been so wrong on their unemployment calls  that we if we  see a very different number we will get a  very weak Canadian Dollar at the end of it.

Just a reminder that we will be closed on Monday but international markets will continue to trade the Loonie, I don't expect much movement as the US is closed as well but it is best to get your orders in early just in case we get some added volatility.

Have a great weekend and a very Happy Thanksgiving, when we are reminded constantly what a large part of the world is like we in Canada have a lot to be thankful for.

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0392			1.0384
CAD/USD		0.9622			0.963
EUR/USD		1.3569			1.353
EUR/CAD		1.4101			1.4033
STG/CAD		1.66			1.6562
AUD/CAD		0.9844			0.9802
CAD/JPY		94.52			94.19
CAD/CHF		0.8753			0.8762
CAD/HKD		7.4557			7.461
CAD/CNY		5.8848			5.8894
CAD/MXN		12.59			12.659
Commodities
Gold		$1,285.00			$1,302.00
OIL		$101.67			$102.11
US DOLLAR INDEX
P.CLOSE		80.57			80.45
OPEN		80.39			80.52
US 10YR YIELD		2.69%			2.70%