GFX Morning FX commentary, October 5th, 2012

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is .9860-.9960
 

Today expected range for the Canadian Dollar against the Euro is 1.2740-1.2840

Today’s expected range for the Canadian Dollar against Sterling is 1.5850-1.5950

The US Dollar is unchanged this morning as the currency markets line up for the release of US unemployment report later this morning. Overnight markets were quiet but did see the news that the Central Bank of Japan announced they would not provide any further stimulus to their economy and the Euro market did not react to a report that showed German factory orders fell 1.3% last month. In his speech yesterday ECB Governor Draghi reiterated that he will do what is necessary to support the Euro and he is ready to start buying sovereign bonds at any time. The Euro did receive a bit of a boost from his press conference and at the moment looks like it wants to remain above the 1.3000 level against the Greenback.

Markets today will focus on the US employment report, we are expecting 111K new jobs to have been created and the unemployment rate to move higher to 8.2% from 8.1%, if correct this should  give Romney more ammunition to fire against Obama on the economy. If the number comes in below expectation then look for the US equity markets to get hit and the US Dollar will jump higher on the safe haven effect.

The Canadian Dollar is virtually unchanged from where we left it yesterday, the Canadian markets is very quiet ahead of the Canadian employment report. In Canada we are expecting 15K new jobs to have been corrected and an unemployment rate of 7.3%, as in the US if the  Canadian number comes in worse than expected we will see USD.CAD jump higher and if we see the number create more jobs than expectation then look for USD.CAD to break lower, either way I am hopeful  this report will bring some volatility to the market and create opportunities to get some better rates.

Our Office will be closed on Monday for Thanksgiving but the Canadian Dollar will of course be trading on the international markets, make sure you get your orders in early today, as we have seen quite often the Loonie can have excessive movements on Canadian holidays and you want to make sure you take advantage of this.

From everyone at GFX thanks for your support and have a great holiday weekend

Mike

GFX Morning Currency Rates
Friday October 05, 2012
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		0.9807			0.9858
CAD/USD		1.0192			1.0144
EUR/USD		1.3007			1.2947
EUR/CAD		1.2784			1.2762
STG/CAD		1.5871			1.5882
AUD/CAD		1.005			1.0048
CAD/JPY		79.87			79.65
CAD/CHF		0.9496			0.9488
CAD/HKD		7.8988			7.8588
CAD/CNY		6.4538			6.4265
CAD/MXN		13.0164			12.97
Commodities
Gold		$1,792			$1,790
OIL		$90.76			$88.77
Option Volatility
Canada
O/N		7.80%			9.51%
1 Week		7.66%			7.56%
1 Month		7.15%			7.31%