Canadian Jobs report exceeds investors' expectations

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

US Dollar             1.2750-1.2850

Euro                     1.4400-1.4400

Sterling                1.6950-1.7050

Pre-Employment report Summary

The US Dollar index is marginally stronger this morning as the markets get set for the US Jobs report for November. It is expected that the US market created another 500+K jobs last month, stocks are pointing higher to start the day so it will be interesting to see if they can keep up yesterday's momentum

The Canadian Dollar is mixed this morning as it lost a little ground to the US Dollar but did pick up some gains against the other currencies. We also get the Canadian Jobs report for November shortly and we are expecting 35K jobs to have been created last month on the back of 31K being created in October.

Post Number Reaction

The US Economy only created 210K new jobs last month which is much weaker than expected, as you would expect the US Dollar has weakened off considerably on this report and early stock numbers have also pulled back a bit. The US economy is still moving forward and I don't think this number will cause much concern at the Federal Reserve, they should continue on with the plan for a couple of interest rate hikes next year and overall the US Dollar should remain supported.

The Canadian economy created a whopping 153+K new jobs last month which has blown the market prediction out of the water. Before the report USD.CAD was trading at 1.2820 (0.7800) and as I write the rate has dropped to trade at 1.2775 (0.7828) and still falling. A great number for the Canadian economy, we will see just how far the Loonie can run.