| Wrap Up |
| The Canadian dollar weakened slightly against the greenback, retreating from a near seven-week high the day before, as worries about Brexit resurfaced and domestic data showed a surprise decline in manufacturing shipments. Canadian factory sales decreased by 0.7% in October as the United Auto Workers’ strike in the United States weighed on transportation equipment sales, Statistics Canada said. The U.S. dollar rose against a basket of major currencies amid concerns about Britain’s setting a hard deadline to reach a new trade deal with the European Union. Canadian government bond prices were lower across the yield curve, with the two-year bond down 2.5 Canadian cents to yield 1.708% and the 10-year bond falling 9 Canadian cents to yield 1.643%. |
| Levels and recommendations |
| The U.S. dollar strengthened as U.S. economic data suggested the Federal Reserve was unlikely to cut interest rates further and as liquidity shrank before the coming holidays. The British pound fell 0.2% as traders assessed the risk of a hard Brexit at the end of the year, with political news expected to take precedence over economic data. The Turkish lira hit its weakest level against the dollar in more than two months after the U.S. Senate passed legislation with provisions to punish Ankara, raising concerns about already strained ties with Washington. The Canadian dollar strengthened against its U.S. dollar, adding to this week’s gains after bets that the Bank of Canada would cut interest rates over the coming months were tempered by data showing a pick-up in underlying inflation. Meanwhile the weaker crude oil price has undermined the demand for loonie. The USDCAD pair has broken the support level of 1.3143 and it is expected to trade in the range of 1.3110 and 1.3145 levels for the day. The next immediate support for the pair is at 1.3085 levels. |