| Wrap Up |
| The Canadian dollar was little changed against its U.S. counterpart, holding near an earlier one-month low as a speech by Bank of Canada Governor Stephen Poloz loomed and investors grew more nervous about a global economic slowdown. Global stocks fell as Chinese economic data slowed in October and Germany only narrowly avoided a recession in the third quarter, adding to worries about the global growth. Canada’s new housing price index rose 0.2% in September, the largest increase in two years, data from Statistics Canada showed. Canadian government bond prices were higher across a flatter yield curve in sympathy with U.S. Treasuries. The two-year bond rose 8 Canadian cents to yield 1.534% and the 10-year bond was up 72 Canadian cents to yield 1.473%.The 10-year yield touched its lowest intraday level since Nov. 4 at 1.465%. |
| Levels and recommendations |
| Hopes of a U.S.-China trade deal turned global stock markets and other risk assets higher, though an escalating wave of global protests from Hong Kong to Chile left some deep scars. The British pound was down slightly against a stronger dollar but little changed against the euro, as investors’ hopes for a Conservative majority in the Dec. 12 election were tempered by concerns about the broader economic outlook. The Australian dollar was heading for heavy weekly losses as rate-cut risk returned with a vengeance, while its New Zealand neighbour went the other way after a policy easing was ruled out for at least a couple of months. The Canadian dollar is trading stronger around 1.3230 levels after disappointing US core retail sales and Empire State Manufacturing data. On Thursday, Bank of Canada Governor Stephen Poloz said that policymakers should also pay attention to longer-term structural forces which uplifted the sentiments for CAD. The USDCAD pair is trading above its support of 1.3224 and it is expected to trade in the range of 1.3224-1.3250 levels. |