CAD Opens at 1.4053 Amid Market Tension Over U.S. Jobs Data and Fed Rate Outlook

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar        1.3940-1.4150

Euro                 1.4690-1.4910

Sterling            1.7840-1.8060

WTI Oil (opening level) $67.76

The CAD is opening at 1.4053 ( 0.7116)

For most of this week we saw the USD/CAD range trade close to 1.4050 (not much higher or lower). this flat trading range may change today with the Non Farm Payroll number that come out this morning. Traders will be on edge over job creation numbers to give them a gauge on the chances of another interest rate cut by the Fed this month.

The US Dollar index is right now trading at the lowest point of the week at 105.76

I see this as the market worrying about a potential number that will move the market significantly.

Next week the Bank of Canada has its announcement on interest rates. So I imagine that the CAD will not move that much until then.

Key Points

·    Equities: S&P, Nasdaq, Dow drop; American Airlines soars; DAX hits record; CAC up despite French politics; Asia mixed, Hang Seng rebounds

·    Volatility: VIX steady; labor data and Fed rate cut expectations dominate sentiment

·    Currencies: EURUSD rebounds as French government failure fails to spark panic. US jobs report in focus for USD.

·    Commodities: OPEC+ price support continues. Copper rising on China stimulus speculation

·    Fixed Income: US treasuries steady ahead of payroll data