| Wrap Up |
| The Canadian dollar weakened to a three-week low against its U.S. counterpart as data showing a surprise decline in domestic jobs added to pressure on the currency since the Bank of Canada shifted to a more dovish stance. Data from Canadian Mortgage and Housing Corporation showed that the seasonally adjusted annualized rate of housing starts fell to 201,973 units in October from a revised 221,135 units in September. The currency’s decline came as U.S. President Donald Trump said he had not agreed to roll back tariffs on Chinese goods, denting investor optimism that the US and China would reach a trade deal. Canadian government bond prices were higher across the yield curve, with 2-year bond up 8.5 Canadian cents to yield 1.584% and the 10-year bond rising 32 Canadian cents to yield 1.581%. |
| Levels and recommendations |
| The US dollar was stronger against the yen and Swiss franc as traders grew optimistic ahead of a speech by U.S. President Donald Trump, in which he is expected to delay a tariff decision on European carmakers by six months. The British pound inched down from six-month highs against the euro and was a touch softer against the dollar on Tuesday, as a boost from the Brexit Party’s decision to not contest previously Conservative-held seats in Britain’s upcoming election faded. The Russian rouble firmed slightly on Tuesday and stock indexes rose, pricing in higher oil prices, as investors hoped that a speech by U.S. President Donald Trump would shed some light on U.S.-China trade talks. The Canadian dollar is trading flat around 1.3230 levels as US dollar index is showing a modest pullback on account of renewed US – China trade uncertainty. Meanwhile, the bullish sentiment around crude oil prices is providing support to CAD. The USDCAD is trading above its resistance level of 1.3224 and it is expected to trade in the range of 1.3224-1.3250 levels for the day. |