GFX Morning Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.1400-1.1500

Today’s expected range for the Canadian Dollar against the Euro is 1.4170-1.4240

Today’s expected range for the Canadian Dollar against Sterling is 1.8100-1.8175

The US Dollar is unchanged for the most part as the currency markets get ready for the release of the US Employment report later this morning. The Euro moved considerably lower yesterday as the European markets reacted to ECB Governor Draghi’s statements that he has deepened his commitment to stimulus and stands ready to add additional measures if needed. He maintained his plan that that the Central Bank will not increase interest rates for at least 2 years. I have been saying for a while that the Euro-Zone has been a mess for a while and I am further convinced that there is lots of pain left yet for all Europeans.

The Canadian Dollar had a very quiet night against the US Dollar as it continues to struggle, given the current situation there is no reason to think that the Loonie slide will stop so US Dollar buyers are still facing higher rates over the short-term. Because we have been so weak against the US Dollar we have not really been able to take advantage of the Euro slide against the US Dollar, EURO.CAD has been range trading for quite a while now and we may yet see the Loonie lose ground to the Euro in the coming days if we keep dropping against the Greenback.

Up today we have the US and Canadian Employment reports for October due out, in the US we are looking for the economy to have created 225,000 new jobs and the unemployment rate staying at 5.9%. In Canada we are expecting the economy to have shed 10k jobs after the Septembers increase of 75K jobs, this confirms my view that the Canadian economy is doing nothing at the moment. Given that the bank economists cannot even get close on these numbers I am expecting a wide swing and lots of volatility, it should be a very busy morning.

Have a great weekend

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.1436			1.1397
CAD/USD		0.8744			0.8774
EUR/USD		1.239			1.2522
EUR/CAD		1.4173			1.4279
STG/CAD		1.8098			1.8185
AUD/CAD		0.9824			0.9816
CAD/JPY		100.72			100.53
CAD/CHF		0.8492			0.8441
CAD/HKD		6.756			6.7815
CAD/CNY		5.3535			5.3392
CAD/MXN		11.9228			11.9318
Commodities
Gold		$1,144.70			$1,145.00
OIL		$78.15			$78.39
US DOLLAR INDEX
P.CLOSE		88			87.43
OPEN		88.15			87.24
US 10YR YIELD		2.39%			2.33%