| Wrap Up |
| The Canadian dollar was little changed against its broadly weaker U.S. counterpart as stocks and oil prices fell, with the loonie steadying after it was pressured the day before by a more dovish tone from the Bank of Canada. Canada’s central bank cut its domestic and global growth forecasts and said the country’s economy would be “increasingly tested” by trade conflicts, as it held its benchmark interest rate at 1.75%. Still, the Federal Reserve, which eased for the third time since July, has lowered the range for its policy rate to below the Bank of Canada’s equivalent for the first time since December 2016. Canadian government bond prices were higher across the yield curve in sympathy with U.S. Treasuries. The two-year bond rose 8.5 Canadian cents to yield 1.516% and the benchmark 10-year bond was up 36 Canadian cents to yield 1.412%. |
| Levels and recommendations |
| The US dollar rose after data showed that U.S. jobs growth slowed less than expected in October, while wages gained and hiring in the prior two months was stronger than previously estimated. The British pound held below $1.30, little changed by Nigel Farage’s announcement his Brexit Party would fight the ruling Conservatives for every seat if Britain’s prime minister does not abandon his Brexit deal. Argentina’s peso opened 0.45% weaker at 59.95 per dollar as Argentina’s central bank was set to auction another $50 million at a rate of 59.99 pesos per dollar, in another intervention aimed at propping up the peso in the days following the South American country’s presidential election. The Canadian dollar is trading weak around 1.3170 levels after US data showing stronger-than-expected jobs growth boosted the greenback. On the other hand crude oil prices increased on sign of progress between US and China trade concerns and a surprise bounce in Chinese Manufacturing activity provided some support to loonie. |