Highlights for October 10, 2014 The IMF warns the BoJ to manage the expectations of the markets in terms of their inflation target. Australian housing numbers continue to slide. Industrial Production were mixed in Europe. Canadian jobs print much higher than expected for the month of September. Charts EUR/CAD Chart USD/CAD Chart 1.14 1.55 1.12 1.50 1.10 1.45 1.08 NYM Light Crude futures Commodities TSX 14460.6 Gold 1223.75 DOW 16659.25 Silver 17.3 S&P500 1928.21 Copper 3.028 Nasdaq 4378.336 Wheat 572.75 Today's Expected USD/CAD Range: 3-Oct 19-Sep 5-Sep 22-Aug 8-Aug 25-Jul Energy Brent Crude WTI Crude Natural Gas Heating Oil 1.1150-1.1250 90.41 85.71 3.845 2.5366 3-Oct 19-Sep 5-Sep 22-Aug 8-Aug 25-Jul 11-Jul 27-Jun 13-Jun 30-May 16-May 16000 15500 15000 14500 14000 13500 2-May 9-Oct 6-Oct 3-Oct 30-Sep 27-Sep 24-Sep 21-Sep 18-Sep 15-Sep 12-Sep 9-Sep 11-Jul S&P/TSX 100 95 90 85 80 75 Indices 27-Jun 13-Jun 30-May 2-May 3-Oct 19-Sep 5-Sep 22-Aug 8-Aug 25-Jul 11-Jul 27-Jun 13-Jun 1.30 30-May 1.02 16-May 1.35 2-May 1.04 16-May 1.40 1.06 FX Rates USD/CAD EUR/CAD GBP/CAD JPY/CAD CLOSE 1.1173 1.4175 1.8008 0.01036 SPOT 1.1177 1.4125 1.7916 96.50  FED Yellen says it's too early to start reversing policy, economy not strong enough.  JPY stronger after 6.6 earthquake 35 miles from TEPCO's damaged nuclear plants. Daily Market Commentary Good Morning, Global equities continued to slide overnight as major Asian indices all closed down on the day. More skepticism on whether or not the BoJ can reach a target inflation of 2% as the IMF urged the Central Bank to be pragmatic about the outlook. The IMF warned that the Bank would need to manage the expectations of the markets if they are unrealistic about reaching their target. Many board members of the BoJ have echoed that Governor Kuroda needs to take out the policy statement where there is a set timeframe for reaching the inflation rate of 2%. Most recently Governor Kuroda sees the bank of possibly achieving the target during the fiscal year starting April 2015. Australian data continues to shows signs of weakness as home loans for August dropped unexpectedly. The number of home loan commitments (owner-occupiers) fell by -0.9% (mkt +0.2%, TD flat) to be +4.4%/yr. Loans for established properties fell -1.1%, a sector that determines house price movements but doesn’t add to supply. Loans for construction fell -0.8% and lending to buy new homes rose by +2.5%/mth, the fourth consecutive increase. AUDUSD has been the worst performer today trading from 0.8780 opening level down to 0.8710 lows where we remain now. Big support level now comes in around 0.8650/60 which is where the yearly double bottom comes in. EURUSD opened the London session around 1.27 with a bias to sell rallies. We traded down to 1.2650 area and since rebounded slightly back to 1.2670 EU data today included French IP figures which came in much stronger than what was suggested by the weakness in Germany and across much of the rest of Europe (0% vs -0.3% exp). The manufacturing side was a touch softer at -0.2%, but better than we had feared. The main news will continue to be comments from the IMF meetings in Washington as Draghi once again speaks in the late afternoon. The main headline out of North America this morning has been the blowout employment numbers in Canada, as they added over 74K jobs for the past month. Markets were expecting a print of 20K while the unemployment rate fell to 6.8%. The loonie traded higher against the mighty dollar by 40 bps after the strong release. Further gains in CAD continues to be buffered by weak commodity prices and the very nature of the volatile jobs numbers over the past few prints. There is no tier one data out of the U.S. this morning and the currencies are likely to respond to talking heads out of the G20 Finance Ministers meetings. 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