| Wrap Up |
| The Canadian dollar was little changed against the greenback, hovering near an earlier one-month low, as data showing weaker U.S. services sector activity supported bets for Federal Reserve interest rate cuts. The U.S. dollar index declined against a basket of major currencies as investors fretted about a slowdown in the world’s largest economy. The central bank has worried that trade uncertainty, including the dispute between the United States and China, is weighing more heavily on the global economy, but has showed no appetite for cutting interest rates amid steady domestic activity. Canadian government bond prices were higher across the yield curve, with the two-year bond up 13 Canadian cents to yield 1.416% and the 10-year bond rising 59 Canadian cents to yield 1.244%. |
| Levels and recommendations |
| Global stocks were slightly higher, clawing back some ground lost in their worst week for months, and safe haven assets rose ahead of a key jobs report as investors hoped this week’s dismal data would trigger more U.S. interest rate cuts. Traders see a 85.2% chance the Fed will cut rates by 25 basis points to 1.75%-2.00% in October, up from 39.6% on Monday, according to CME Group’s FedWatch tool. The euro was a shade higher at $1.0974, near a one-week high. Euro-zone government bond yields were lower in early European trading and spot gold was up 0.3%, on course for a 0.75% weekly gain. The Canadian dollar is trading stronger at 1.3310 levels after disappointing US employment data. On the other increase in crude oil prices gave an additional boost to CAD. However the appreciation in CAD was largely offset due to poor domestic PMI data. The USDCAD is expected to trade in the range of 1.3290-1.3356 levels for the day. |