| Wrap Up |
| The Canadian dollar edged higher against the greenback, sticking to a narrow trading range as investors awaited guidance on the Bank of Canada interest rate outlook and weighed prospects of the United States delaying additional tariffs on China. Bank of Canada Governor Stephen Poloz, who will step down when his seven-year mandate expires in June, is due to speak on Thursday on “seeing the big picture.” The currency traded between 1.3225 to 1.3249, holding in a narrow range despite news that top officials from Canada, Mexico and the United States signed a fresh overhaul of their quarter-century-old regional trade pact. Canadian government bond prices were lower across a steeper yield curve, with 2-year bond down 0.5 Canadian cent to yield 1.669% & 10-year bond falling 15 Canadian cents to yield 1.601%. |
| Levels and recommendations |
| The U.S. dollar treaded water against a basket of major currencies, as FX markets braced for a host of events, including central bank meetings in the United States and Europe, the UK general election and a key deadline for U.S.-China trade talks. The British pound inched higher in very thin trading, shrugging off a key opinion poll for Britain’s general election that showed the ruling Conservative Party might still fail to win a majority. The New Zealand dollar pared some recent gains as profit-taking overshadowed upbeat data and the promise of fiscal stimulus, while its Australian counterpart was saddled with another poor reading on local consumption. The Canadian dollar is trading stronger around 1.32 levels as investors are refraining from making large bets while waiting for the macroeconomic data releases and the FOMC’s policy announcements. Meanwhile the loonie got some support after crude oil prices started recovering from day’s low due to build up in US crude oil inventories. The USDCAD is expected to trade in the range of 1.3175-1.3225 levels for the day. |