| Wrap Up |
| The Canadian dollar weakened against its U.S. counterpart and every other G10 currency, as investors worried about a potential escalation of global trade conflicts and awaited a Bank of Canada interest rate decision this week. The Bank of Canada, which is expected on Wednesday to leave its benchmark interest rate at 1.75%, has expressed concern about global trade uncertainty. The loonie has been pressured since October by a more dovish stance from the central bank. Canadian manufacturing activity expanded in November for the third consecutive month as production climbed at a faster pace and new orders continued to grow, but the momentum was subdued compared with historical levels, data showed. The two-year bond fell 5 Canadian cents to yield 1.613% and the 10-year bond was down 68 Canadian cents to yield 1.536%. |
| Levels and recommendations |
| The safe-haven yen and Swiss franc rallied against the dollar as risk appetite eased after U.S. President Donald Trump said a trade deal with China might have to wait until after the 2020 U.S. presidential election. The British pound climbed to its highest levels in six weeks against the backdrop of broad-based dollar weakness and after a new poll showed the ruling Conservative Party widening its lead before next week’s election. The Australian and New Zealand dollars held onto hefty gains, after some surprisingly soft U.S. economic news upended their U.S. counterpart and Australia’s central bank put rates on hold for the next couple of months. The Canadian dollar is trading flat around 1.33 levels as investors worried that a U.S.-China trade deal would be delayed and awaited a Bank of Canada interest rate decision this week. Meanwhile, crude oil prices are sliding downside ahead of US crude oil inventory data due today. The USDCAD pair is expected to trade in range of 1.3290-1.3325 levels for the day. |