| Wrap Up |
| The Canadian dollar strengthened against its U.S. counterpart, lagging behind some other commodity-linked currencies but recovering from a one-month low the day before as investors grew more hopeful about a U.S.-China trade deal. Canada’s inflation report for October is due next Wednesday and September retail sales data is due next Friday, both of which could help guide expectations for Bank of Canada interest rate cuts. The loonie has declined as much as 1.5% since Oct. 30, when the central bank left the door open to a possible interest rate cut over the coming months to help the economy weather trade uncertainty. The 10-year bond fell 21 Canadian cents to yield 1.487%. On Thursday, the 10-year yield touched its lowest intraday level since Nov. 4 at 1.464%. |
| Levels and recommendations |
| The British pound inched higher towards $1.30 on expectations the Conservative Party could win a majority in next month’s election and finally push through parliament the Brexit deal agreed with Brussels, paving the way for Britain to leave the EU on Jan. 31. The safe haven Japanese yen gained after a media report dashed fresh hopes that the United States and China are close to reaching a trade deal. The Australian and New Zealand dollars marked time with little in the way of domestic data to react to and the jury still out on where interest rates are going in coming months. The Canadian dollar was little changed against the greenback, pulling back from an earlier 10-day high as global trade optimism faded and domestic inflation data loomed later in the week that could help guide the interest rate outlook. The USDCAD pair is trading at an important resistance level of 1.3224 and it is expected to trade in the range of 1.3200-1.3250 levels for the day. |