Canadian Dollar Falls as Job Market Shifts from Full-Time to Part-Time

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

US Dollar        1.3750-1.3850

Euro                 1.4750-1.4850

Sterling            1.7450-1.7550

WTI Oil (opening level) $75.45

The US Dollar index is stronger this morning after a better than expected US jobs report on Friday that saw the US create 272K new jobs last month which is another strong report and should leave the Fed on the sidelines until the fall at the very least.

In overnight news the Greenback surged against the Euro as far right political parties in both Germany and France made significant gains in European elections which led French President Macron to call a snap election. EUR.USD which had been trading at 1.0900 before results were announced fell to trade at 1.0740 this morning, further reason to expect the US Dollar to remain supported.

The Canadian Dollar lost further ground to the Greenback as USD.CAD is up over 100 points to start the week at 1.3775 (0.7260) which is the highest level we have seen in over 6 months. The Canadian employment picture remained murky on Friday as the economy created 62,000 part-time positions while losing 36,000 full-time jobs in May, not the type of numbers one would expect to support the Loonie. It was not a total loss for the Loonie as it was able to pick up some gains against the Euro with EUR.CAD falling to trade at 1.4800 this morning, down from an overnight high of 1.4900. Once again no reason to see why the Loonie would go on an extended run and there is a clear path to see USD.CAD hit 1.3800 (0.7246) this week.

It is a big week on the calendar for the US market as we get both the latest inflation report and the announcement from the Federal Reserve on interest rates. More on these later in the week but I think it is safe to say that with the turnaround in European elections and these announcements out of the States it could be a very volatile week.