GFX Morning Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0800-1.0925

Today’s expected range for the Canadian Dollar against the Euro is 1.4740-1.4840

Today’s expected range for the Canadian Dollar against Sterling is 1.7810-1.7900

The US Dollar is stronger this morning as the currency markets get ready for the US December Employment report this morning. Yesterday saw the Euro get hit very hard as ECB Governor stressed that inflation would remain low for a long period of time which means that interest rates will stay low in Europe for some time, certainly the European recovery will lag that of the US so the Euro may trade with a weak bias for the next little while.

All currency movement will get its direction from the US employment report today where we are expecting 190,000 new jobs to have been created in December, if this number comes in much stronger than expected then we will see the US dollar rally and if it is much less than expectation then the Greenback will lose some ground.

The Canadian Dollar is unchanged from yesterday’s closing levels against the US Dollar but it did manage a big gain against EURO and Sterling yesterday has the Loonie was able to take advantage of the Euro weakness. If you do need to purchase some Euro over the short-term you may be able to get it at bit better levels. The Canadian Dollar does remain very weak and there is pressure at the moment that USD.CAD can still go much higher.

Up today we also get the Canadian Employment report which will of course affect the value of the Loonie, we are expecting Canada to have created 13,000 new jobs in December. Once again if we see the number come in above expectation then USD.CAD should drop back towards 1.0800 and if it is very poor the USD.CAD will rise above 1.0900 today, if it moves significantly I will send out a currency alert. I have widened out today’s trading range just on the premise that I believe the markets will be quite busy after the jobs reports, to say that Canadian bank economists have a poor track record when predicting this number would be a very kind statement so I think the number will be very different than what the market is expecting.

Have a great day

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.086			1.0845
CAD/USD		0.9208			0.922
EUR/USD		1.3595			1.3548
EUR/CAD		1.4764			1.4762
STG/CAD		1.7835			1.7867
AUD/CAD		0.9655			0.9637
CAD/JPY		96.66			96.67
CAD/CHF		0.8355			0.8379
CAD/HKD		7.1188			7.1381
CAD/CNY		5.5697			5.582
CAD/MXN		12.0477			12.0942
Commodities
Gold		$1,232.00			$1,228.00
OIL		$92.67			$92.67
US DOLLAR INDEX
P.CLOSE		80.94			81.05
OPEN		81			81
US 10YR YIELD		2.97%			2.99%