USD/CAD - Traders Cope with Static Jobless Rate

The Canadian dollar came under pressure yesterday after U.S. weekly Jobless Claims were lower than consensus, and investors reacted by buying U.S. dollar heading into today's U.S. jobs data today. Canadian Net Employment Change this morning was expected at +12,000 and headlined at 10,000, and the Unemployment Rate remains at 6.2%. WTI Crude Oil currently trades higher as Tropical Storm Nate threatens to become a hurricane. Nate has already caused the closing of oil and gas platforms in the Gulf of Mexico and is expected to make landfall on the Florida panhandle Sunday.

It's also jobs day in the U.S. and economists forecast only 80,000 jobs added in September. Predictions have warranted soft results, as two massive hurricanes battered the U.S. Southern States. Non-farm Payrolls headlined at -33,000 and with previous months revised higher the U.S. Unemployment Rate drops to 4.2% from 4.4%. More market event risk will come from a day that is peppered with Fed speakers. A total of four speaking today; 9:15 a.m. Raphael Bostic will speak at Workforce Conference, William Dudley is to speak on Monetary Policy at 12:15 pm, Robert Kaplan at 12:45 and James Bullard speak of the economy in St. Louis at to 1:00 p.m.

Experts expect a range today of $1.2534 to $1.2599

German Factory Orders in August performed better than expected and printed at 3.6% m/m and 7.8% y/y. French Trade Balance narrowed more than expected at -4.5 billion from the expected -5.4 billion. Italian Retail Sales fell below expectations of 0.2% and printed at -0.3%. Even with the positive news this morning, the euro is still soft and trading at $1.4692.

Market watchers expect a range today of $1.4632 to $1.4719

Halifax House Price had a strong showing of 0.8% when the expectation was for 0.0%. The pound is continuing its drop from Monday and has lost a total of two cents this week. Prime Minister May’s future is still in question and raising uncertainty with the sterling, which is currently trading at $1.6395.

Traders expect a range today of $1.6359 to $1.6443

The Australian dollar continues to weaken after Reserve Bank of Australia board member Ian Harper unexpectedly talked of possible rate cuts from the central bank. Harper sees room for interest rate cuts if consumption across the economy loses momentum. The Aussie remains intact as it trades to a new recent low.

Oil (WTI): $49.49 U.S. per barrel

Gold: $1,265.10 U.S. per ounce

Silver: $16.56 U.S. per ounce

Copper: $3.0285 U.S. per tonne

Dollar Index: 94.08