| Wrap Up |
| The Canadian dollar was little changed against its U.S. counterpart, clawing back its earlier decline as the potential for a last-minute Brexit deal weighed on the greenback. The U.S. dollar index fell across the board as dismal U.S. retail sales data painted a gloomy picture of the economy and as sterling and the euro benefited from hopes that Britain and the European Union were on the verge of an amicable divorce deal. Canada’s annual inflation rate held steady at 1.9% in September, falling short of the 2.1% rate that analysts had expected, data on Wednesday from Statistics Canada showed. Canadian government bond prices were higher across a steeper yield curve, with the two-year bond up 4 Canadian cents to yield 1.668% and the 10-year bond rising 14 Canadian cents to yield 1.548%. |
| Levels and recommendations |
| Confirmation of a new Brexit deal sent sterling to a five-month high and hoisted European stocks to a year-and-a-half peak, before familiar doubts about British parliamentary support for the agreement hauled them back. Sterling, which has been the key gauge of Brexit sentiment all along, jumped as much as a 1% against the dollar, putting it on course for its best six-day gain in more than 30 years before the doubts and grumbles set it The Turkish lira weakened to 5.8877 to the dollar as markets remained in focus after the country’s military advance in Syria created tensions with the United States and Europe and incurred mild sanctions. The Canadian dollar is trading stronger around 1.3250 mark after strong domestic manufacturing sales data. On the other hand U.S. retail sales fell for the first time in seven months, suggesting manufacturing-led weakness was spreading to the broader economy. The USDCAD pair is expected to trade in the range of 1.3140 – 1.3200 levels for the day. |