GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.1350-1.1450

Today’ expected range for the Canadian Dollar against the US Dollar is 1.4080-1.4280

Today’s expected range for the Canadian Dollar against Sterling is 1.7880-1.7980

The US Dollar is marginally stronger this morning as the currency markets await the US Jobs report for November. The Greenback continues to push higher against the Yen as USD.JPY pushed well above the 120.00 level last night and is approaching 121.00, most market watchers have predicted that it will hit 125.00 soon, perhaps after the general election in that country.

Bank economists have predicted that the US economy will have added another 230K new jobs to the economy last month, this will make nine straight months that the US economy has created more than 200k new jobs each month. A positive report will continue to push the recent stronger US Dollar trend, in the past three month the US Dollar index has risen 7.4 percent which has been the best performing currency among all Western currencies, I don’t think this trend will end anytime soon.

The Canadian Dollar had a quiet night against the Greenback trading in a very tight range. It is a little weaker but nothing to get excited about, the Loonie so far has not been able to recover the value it lost after the OPEC meeting last week but when you look at other oil-producing nations like Norway and Mexico the Loonie is not doing all that bad at the moment.

In addition to the US Employment report we also have the Canadian Jobs report for November, after two stellar months the consensus is for another 5K new jobs to have been created last month. I am not sure why the Bank’s bother to publish expectations as they have been so far off the mark the last year  it does not make any sense to keep predicting the result. If it is a strong report we should see USD.CAD drop back towards 1.1350 and if it is a very weak report it will start to run back towards 1.1500. I will also watch and see if there have been any downward revisions to the last couple of months, any negative revisions will put pressure on the Loonie. Either way this morning will be volatile so make sure you have your orders in early to take advantage of the move.

If we have a big move I will send out a currency alert, have a great weekend.

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.141			1.1352
CAD/USD		0.8764			0.8809
EUR/USD		1.2348			1.2307
EUR/CAD		1.4092			1.3975
STG/CAD		1.7896			1.7798
AUD/CAD		0.9546			0.9506
CAD/JPY		105.08			105.58
CAD/CHF		0.8527			0.8606
CAD/HKD		6.7727			6.8054
CAD/CNY		5.3891			5.4234
CAD/MXN		12.4344			12.4392
Commodities
Gold		$1,202.00			$1,202.00
OIL		$66.10			$67.33
US DOLLAR INDEX
P.CLOSE		88.62			88.96
OPEN		88.89			88.97
US 10YR YIELD		2.26%			2.28%