US Dollar Flat Ahead of May Jobs Report; CAD Steady Post-Bank of Canada Rate Cut

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

US Dollar        1.3650-1.3750

Euro                 1.4850-1.4950

Sterling            1.7450-1.7550

WTI Oil (opening level) $75.26

The US Dollar index is flat ahead of the US May employment report due out this morning. The report is expected to show that the US economy created 185K new jobs last month which would be slightly higher than the 175K created in April. A poor report should push the Greenback lower as it would indicate that the US economy is finally slowing and bring US interest rate cuts back into focus, a strong report would push the US Dollar higher as it would indicate that interest rate cuts are not needed.

The Canadian dollar has settled into it's new range near the 1.3700 (0.7299) level after the market digested the first Bank of Canada interest rate cut in years. We also get the Canadian May employment report today and the economy is expected to have created just over 20K jobs last month which would be a drop in the surprising 90+k jobs that were created in April. A strong number here will let the Bank of Canada consider another rate cut in July which would push the dollar lower.

After a strong day yesterday stocks are poised to open flat today but will also react to the US Employment report. Look for some volatility around the release of the employment reports and then the currency markets should settle down and range trade.