| Wrap Up |
| The Canadian dollar was little changed against the greenback, posting a decline for the month as investors worried about U.S.-China tensions and data showed that Canada’s economic growth slowed as expected in the third quarter. Ahead of the central bank’s Dec. 4 interest rate decision, official data showed that the Canadian economy expanded at an annualized rate of 1.3% in the third quarter on higher business investment and increased household spending. Canadian Prime Minister Justin Trudeau said a little more work needed to be done on a new continental trade deal which has run into opposition from some U.S. Democrats over labor and environmental provisions. The two-year bond up 2 Canadian cents to yield 1.58% and the 10-year bond rising 11 Canadian cents to yield 1.456%. |
| Levels and recommendations |
| The U.S. dollar scaled a six-month high versus the Japanese yen and New Zealand’s currency jumped to near four-month peaks after an unexpected rebound in Chinese manufacturing activity lifted hopes of a brighter outlook for world growth. Emerging market stocks and the highly sensitive Mexican peso slid to session lows, after U.S. President Donald Trump tweeted he would restore tariffs on steel imports from Brazil and Argentina. China’s yuan extended gains against the dollar after the head of the central bank made it known that China would not resort to a competitive devaluation and would aim to keep the currency broadly stable. The Canadian dollar is trading weak around 1.33 levels as investors worried about a potential escalation of global trade conflicts and awaited a Bank of Canada interest rate decision this week. Meanwhile crude oil prices is providing some support to loonie. The USDCAD pair is trading near important support level of 1.3290 and it is expected to trade in the range of 1.3275-1.3325 levels for the day. |