GFX Morning Commentary

Good Morning,

Today’s expected range for the Canadian Dollar against the US Dollar is 1.1780-1.1880

Today’s expected range for the Canadian Dollar against the Euro is 1.3970-1.4070

Today’s expected range for the Canadian Dollar against Sterling is 1.7900-1.8000

The US Dollar is marginally weaker against the Euro and Sterling this morning as the currency markets get set for the release of the US Employment report for December. Sterling is a bit higher as a UK manufacturing report came in better than expected and their trade deficit narrowed.

All market watchers will be on the US Employment report for December where we are expecting an increase of 240K new jobs this is after the November number blew away expectation coming in at 320K new jobs. Obliviously a surprise number will move the currency markets in either direction but if we come in close to expectation I think that will be US Dollar positive as traders will look at continued employment growth as a sure sign of US interest rate hikes this year.

The Canadian Dollar is a bit weaker against the US this morning but has managed to hold onto recent strength against the Euro and Sterling. In addition to the US Employment report for December we also get the Canadian Employment report where we are expecting 10K new jobs to have been created, last month we showed decline of 10.7 jobs. Any negative news for Canada will just push USD.CAD that much higher but a combination of a strong US number and a weak Canadian number will push the exchange rate above 1.1900.

Just on a side note I don’t think this Employment report will show any effect from the low price of oil, we did not see oil start to drop until after the OPEC meeting in mid-October. We should start to see an effect on the January and February numbers as the oil patch lays off workers and the rest of the country picks up activity with lower energy costs.

Have a great day.

Mike

GFX Morning Currency Rates
Currencies	7:00am Today's Opening				Yesterday's Opening			4pm close January 08, 2014
USD/CAD	1.1821				1.1797				1.1836
CAD/USD	0.8459				0.8477				0.8448
EUR/USD	1.1814				1.1765				1.1787
EUR/CAD	1.3973				1.3883				1.3957
STG/CAD	1.7925				1.777				1.7855
AUD/CAD	0.9629				0.9567				0.9604
CAD/JPY	100.81				101.32				101.02
CAD/CHF	0.8591				0.8645				0.8603
CAD/HKD	6.5764				6.5497				6.5294
CAD/CNY	5.559				5.2573				5.2484
CAD/MXN	12.4222				12.464				12.4352
Commodities
Gold	$1,212				$1,206				$1,207.00
OIL	$48.50				$49.05				$48.80
US DOLLAR INDEX
OPEN	92.1				92.4				92.33
US 10YR YIELD	2.00%				2.00%				2.01%