| Wrap Up |
| The Canadian dollar edged lower against its U.S. counterpart as investors worried that trade talks this week between the United States and China would do little to help the global growth outlook. U.S. stocks fell as hopes of progress in high-level trade talks were dashed by a report Washington was moving ahead with efforts to limit capital flows to China and the inclusion of some top Chinese startups to a blacklist. The price of oil, one of Canada’s major exports, slid on dampened hopes for a U.S.-China trade deal, although unrest in Iraq and Ecuador lent some support to crude prices. Canadian government bond prices were higher across the yield curve in sympathy with U.S. Treasuries. The two-year bond rose 2 Canadian cents to yield 1.449% and the 10-year bond was up 20 Canadian cents to yield 1.278%. |
| Levels and recommendations |
| Global stocks gained as investors clung to hopes that the United States and China could yet agree some sort of trade deal, while the prospect of a last-minute Brexit agreement between the European Union and Britain seemed as remote as ever. The British pound was last down marginally on the day at $1.2214 after a British newspaper report said that the EU would make a major concession in the negotiations, but the gains were quickly unwound as EU sources denied it. Sweden’s crown weakened to another decade low against the euro. Scandinavian currencies have been buffeted by concerns about a global trade slowdown, and the Norwegian crown this week hit a more than decade low. The Canadian dollar is trading flat around 1.3322 levels as broader strength is seen in the US dollar index ahead of US – China high level trade negotiations due on Thursday. The improved market sentiments has helped crude oil prices to recover its looses, giving additional support to loonie. |