Canadian Employment report shows disappointing numbers

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

US Dollar              1.2475-1.2575

Euro                       1.4800-1.4900

Sterling                 1.7400-1.7500

The US Dollar Index is trading marginally higher ahead of the US Employment report for July. Comments from Federal Reserve officials earlier in the week that they are considering slowing their stimulus program at some point this year have moved US 10-year interest rates higher and given a little strength to the Greenback.

Ahead of the Canadian Employment report the Loonie is fairly stable, USD.CAD did dip below the 1.2500 (0.8000) level yesterday but the Loonie could not hold onto those gains. The Loonie has held onto the small gains it made against the other countries so we will see how it does after the report.

Market Expectation Actual Number

US Employment Report 870K (June 850K) 943K

Canadian Employment Report 177K (June 230K) 94K

Post report the US number is slightly better than expectation and the Canadian number has come in well below expectation. The US Dollar is moving higher, USD.CAD has jumped higher to trade at the 1.2530 (0.7980) level and at the moment it looks like it wants to go higher in the short term.