| Wrap Up |
| The Canadian dollar was little changed against its U.S. counterpart, sticking to a narrow range as oil prices fluctuated and trade talks loomed this week between the United States and China. U.S. stocks dipped after a report that Beijing was increasingly reluctant to agree to a broad trade deal pursued by President Donald Trump weighed on sentiment. The price of oil, one of Canada’s major exports, gave up its earlier gains as hopes of a comprehensive U.S.-China trade deal faded and a new poll showed analysts expected U.S. oil crude inventories to have risen last week. Canadian government bond prices were lower across the yield curve in sympathy with U.S. Treasuries on Monday. The two-year bond fell 7 Canadian cents to yield 1.452% and the 10-year bond was down 50 Canadian cents to yield 1.287%. |
| Levels and recommendations |
| Global stocks sank and major bond yields nudged lower as concerns over China-U.S. trade talks, disappointing European company news and escalating tensions between London and Brussels sparked a flight to safety. The euro got a boost from the healthy German industrial output data, rising 0.2% to $1.0983 though not far off the more than a two-year low it hit last week. The British pound tumbled to a one-month low against the euro after reports that Brexit talks between Britain and Brussels were close to breaking down. The Canadian dollar is trading flat at 1.3315 levels after muted domestic housing data for the month of September. On the other hand Chinese delegation was expected to leave Washington earlier than planned resulted in resurfacing negative impact on global economy demand outlook putting crude oil prices under pressure. The USDCAD pair has an immediate support at 1.3356 levels and it is expected to trade in the range of 1.3290-1.3356 levels. |