GFX Morning FX Commentary, September 7th, 2012

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is .9780-.9880

Today's expected range for the Canadian Dollar against the Euro is 1.2450-1.2550

Today's expected range for the Canadian Dollar against Sterling is 1.5620-1.5730

The US Dollar is weaker this morning as equity markets are stronger on the news of the ECB bond buying program has been well received, in fact the S&P index is now at a post 2008 high and it looks like it wants to go higher. EURO.USD continues to get stronger on the overall good mood coming out of Europe but it was also helped by better than expected export and industrial production numbers in Germany this morning. It looks like the Euro will continue its momenteum over the short-term at least and EURO.USD is now trading above 1.2700, nice to see the problems of Europe are behind them (insert sarcasm here!!)

                      
Now that the ECB is out of the way currency trading today will focus on the US and Canadian Jobs reports for August, in the US we are ecpecting another 130k jobs to have been created, a poor number may take the lustre off of equities for the day and drive the US Dollar higher.

Sterling also got a quick boost  this morning as the UK Industrial number came out the best in 25 years, GBP.USD reached a high of 1.5980 on the report but has since given up most of those gains and is lower now than where we left it yesterday afternoon.

The Canadian Dollar is stronger this morning as USD.CAD looks set to test the .9800 level. For the Canadian jobs report we are expecting 11k new jobs to have been created which is inline with previous months, for all purposes significant  job growth in Canada is stagnant. A weak number will push USD.CAD back towards .9900 and a strong report should give the Loonie the push it needs to get below .9800.

 

Have a great weekend

Mike

GFX Morning Currency Rates
Friday September 07, 2012
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9812			0.988
CAD/USD		1.0188			1.012
EUR/USD		1.2685			1.2619
EUR/CAD		1.2446			1.2468
STG/CAD		1.5636			1.5714
AUD/CAD		1.0144			1.0118
CAD/JPY		80.45			79.38
CAD/CHF		0.9751			0.9654
CAD/HKD		7.8817			7.8293
CAD/CNY		6.462			6.4179
CAD/MXN		13.2327			13.2522
Commodities
Gold		$1,697			$1,709
OIL		$95.72			$96.48
Option Volatility
Canada
O/N		5.67%			9.00%
1 Week		6.65%			6.93%
1 Month		6.21%			6.79%