Archived IMT (2009.10.09)

As we warned last night, Canadas jobs report triggered sharp gains in CAD -- main reason why CAD is the highest performing currency today, with a net creation of 31K jobs in Sep (first back-to-back monthly increase in over 12 months and equivalent of about +300K jobs in the US). Also key was the decline in the unemployment rate to 8.4% from 8.7%, the first decrease since July 2008. USDCAD has usually extended losses into the following week after strong jobs figures, which paves the way for a possible retesting of the 1.0320 low seen in September 2008. Considering Trichets comments about intervention, we could see further declines in EURCAD into 1.5300.

US and CAN trade figures due at 13:30 GMT. US exp -$33 bln from -32 bln. Can balance exp C$ 1bln from C1,4 bln, USDJPY capped at 89.30. EURJPY capped at 131.95.