GFX Morning FX Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.0600-1.0700

Today’s expected range for the Canadian Dollar against the Euro is 1.4450-1.4520

Today’s expected range for the Canadian Dollar against Sterling is 1.8210-1.8280

The US Dollar is marginally weaker this morning , yesterday saw the Dollar trade stronger as worries over a potentially large Portuguese bank failure made investors very worried, at one point yesterday the Dow Jones Industrial Average was down 150 points, it did recover a little during the afternoon session but stocks are certainly trading with a cloud over their head at the moment.

The Canadian Dollar had a quiet night last night as it gets set up for this morning’s employment report, USD.CAD  was able to pull back from its worst levels of the day yesterday but still continues to trade within a narrow range at the moment. We are expecting 25K new jobs to have been created in June and an employment rate of 7.0% (last 7.0%). Given that bank economists over the past year have not even been close when it comes to predicting this number I am not sure what to expect, if we get a very poor number I can see USD.CAD moving above 1.0700 and if it is an overly strong report than we will see if USD.CAD can break towards 1.0600, either way I think we will have some volatility so make sure you take advantage of any moves in your direction.

I will be out of the office today but accessible through my Blackberry, have a great weekend

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0632			1.0662
CAD/USD		0.9405			0.9379
EUR/USD		1.3609			1.3613
EUR/CAD		1.4469			1.4517
STG/CAD		1.822			1.8245
AUD/CAD		0.9998			0.9991
CAD/JPY		95.26			95
CAD/CHF		0.839			0.8362
CAD/HKD		7.2879			7.2461
CAD/CNY		5.8334			5.8142
CAD/MXN		12.2174			12.2232
Commodities
Gold		$1,337.90			$1,343.00
OIL		$102.60			$101.65
US DOLLAR INDEX
P.CLOSE					80.03
OPEN		80.13			80.1
US 10YR YIELD		2.52%			2.52%