| Wrap Up |
| The Canadian dollar weakened to a one-month low against its U.S. counterpart, but the currency’s decline lost some momentum as investors turned attention to a speech by Bank of Canada Governor Stephen Poloz on Thursday. The loonie has declined by as much as 1.5% since Oct. 30, when the BoC shifted to a more dovish stance by cutting its economic growth forecasts. Poloz is due to speak on the fourth industrial revolution at the Federal Reserve Bank of San Francisco on Thursday evening. Money markets see chances of an interest rate cut from Canada’s central bank next month at less than 25%. The two-year bond rose 6 Canadian cents to yield 1.572% and the 10-year bond was up 56 Canadian cents to yield 1.550%. The 10-year yield hit its lowest intraday level since Nov. 4 at 1.530%. |
| Levels and recommendations |
| The US dollar index recovered from earlier lows as weak economic data and concern about whether Beijing and Washington will reach a trade deal burnished its appeal as a safe haven. The British pound kept within its recent trading range but this week could prove its second best so far this month as expectations that the Conservative Party may win a majority in the Dec. 12 national election fuel investors’ optimism. The Turkish lira weakened after U.S. President Donald Trump pushed President Tayyip Erdogan to walk away from the purchase of a Russian missile defence system, calling it a “very serious challenge” to bilateral ties. The Canadian dollar is trading flat around 1.3260 levels as investors turned attention to a speech by Bank of Canada Governor Stephen Poloz due Today. Meanwhile crude oil prices gains momentum after OPEC said that it saw no sign of global recession and US shale gas production could grow much less than expected in 2020 which provided some support to loonie. The USDCAD pair is likely to trade in range of 1.3225-1.3290 levels. |