GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0875-1.0955

Today’s expected range for the Canadian Dollar against the Euro is 1.4880-1.4950

Today’s expected range for the Canadian Dollar against Sterling is 1.8350-1.8420

The US Dollar is mixed this morning as it is weaker against Pound but stronger against the Euro. Even though it was a bit weaker last night the Euro is surprisingly quite strong when you consider the interest rate cuts that were introduced yesterday to try and get more money moving in the EU economy. Last night one voting member of the ECB council said that inflation was “massively” below the central bank’s target, when you get statements like this I find it hard to see any prolonged Euro demand but at the moment it is hanging in there quite well.

The Canadian Dollar has stopped the recent bleeding against the US Dollar as USD.CAD is off the highs that we saw yesterday, the Loonie does continue to hold onto its strength against the Euro and Sterling.

Loonie trading will be dominated by the US and Canadian Employments due out this morning. In Canada we are expecting 21.5K new jobs to  have been created, this was after the 28.9K jobs we lost last month. In the US we are expecting 220K new jobs which is down from last month of 288K with a slight uptick in the unemployment as more people are coming back to the workforce on the expectation that they can now find a job. I think we will have a volatile morning either way, a strong number out of Canada should push USD.CAD lower but a very weak number will set the market up for a move back to 1.1000. It seems the economists can never get close on their predictions with this number so it won’t surprise me if these expectations are way off the actual number, if there is a dramatic movement 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		1.0922			1.0937
CAD/USD		0.9155			0.9143
EUR/USD		1.363			1.3611
EUR/CAD		1.4891			1.4891
STG/CAD		1.8366			1.8343
AUD/CAD		1.0212			1.016
CAD/JPY		93.67			93.68
CAD/CHF		0.8174			0.8185
CAD/HKD		7.0756			7.0663
CAD/CNY		5.7161			5.716
CAD/MXN		11.8071			11.8348
Commodities
Gold		$1,253.00			$1,245.00
OIL		$102.71			$102.33
US DOLLAR INDEX
P.CLOSE		80.38			80.67
OPEN		80.44			80.58
US 10YR YIELD		2.56%			2.58%