GFX Morning Commentary

Good Morning,

Today's expected range for the Canadian Dollar against the US Dollar is 1.0900-1.0975

Today's expected range for the Canadian Dollar against the Euro is 1.4620-1.4700

Today's expected range for the Canadian Dollar against Sterling is 1.8370-1.8450

The US Dollar is marginally stronger this morning as the US Dollar continues to benefit from the strong GDP data but also from a flight to safety after world equity markets were slaughtered yesterday in reaction the Argentinian default. It looks like the carnage will continue today as the DOW futures are already pointing down over 60 points on the opening.

Both the Euro and Sterling were lower as a result of the weaker data, in the UK the pound dropped the most as the region produced weaker than expected manufacturing data bringing into question the strength of the regions recover. In Europe the Euro escaped relatively unscathed, I think it was just that the Euro has been hit so hard over the past few weeks currency traders left it alone last night and concentrated on the Pound. The Euro should remain weak over the short-term.

The Canadian Dollar is marginally weaker against the Greenback this morning as USD.CAD continues to creep higher, the Loonie continues to also lose ground to the Euro and Sterling as well so not an encouraging picture for the Canadian Dollar.

‎Trading today will be dominated by the US employment report for July where we are expecting over 210k (6 month in a row of this type of numbers) new jobs to have been created (down from 288K last month)  and an unemployment rate of 6.1%. If the number blows away the expectation then it is quite conceivable to see USD.CAD trading at 1.1000 today, if the number is poor the we will break much lower.

A quick reminder that our office will be closed on Monday but the currency will continue to trade on world markets, make sure you have your orders in early today as you don't want to miss any opportunities that present themselves.

Have a great weekend

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening
USD/CAD		1.0932			1.0913
CAD/USD		0.9147			0.9163
EUR/USD		1.34			1.3385
EUR/CAD		1.4651			1.461
STG/CAD		1.8408			1.8429
AUD/CAD		1.0147			1.0147
CAD/JPY		94.13			94.21
CAD/CHF		0.8299			0.8326
CAD/HKD		7.0672			7.0793
CAD/CNY		5.6495			5.6547
CAD/MXN		12.1319			12.1115
Commodities
Gold		$1,285.00			$1,296.00
OIL		$97.39			$99.55
US DOLLAR INDEX
P.CLOSE		81.46			81.42
OPEN		81.47			81.48
US 10YR YIELD		2.58%			2.55%