| Wrap Up |
| The Canadian dollar climbed to its strongest in more than two months against its U.S. counterpart as investors welcomed an eleventh-hour Brexit deal and domestic data showed a stronger-than-expected gain for factory sales in August. Separate data from payroll services provider ADP showed that Canada added 28,200 jobs in September, building on a blockbuster increase of 109,900 in an upwardly revised reading. The gain for the loonie came as U.S. House Speaker Nancy Pelosi said lawmakers were getting closer to an agreement with the Trump administration on revisions to the deal negotiated by the Trump administration with Canada and Mexico. Canadian government bond prices were lower across the yield curve, with 2-year bond down 2.8 Canadian cents to yield 1.659% and the 10-year bond falling 18 Canadian cents to yield 1.567%. |
| Levels and recommendations |
| Global stocks flatlined after China posted its weakest growth in nearly three decades, while the dollar headed for its worst week in almost four months having been pummelled by pound and euro Brexit rallies. The euro meanwhile continued to creep upwards, making a 7-week high of $1.1145. The dollar remained weak too, having seen poor retail sales data and more U.S. interest rate cut talk contribute to its biggest weekly slide since June. The British pound was taking a breather at $1.2886, having scored its best six-day streak in nearly 30 years on Thursday after Britain and the EU sealed a new Brexit deal. The Canadian dollar is currently trading flat around 1.3138 levels after strong appreciation yesterday due to disappointing US in both manufacturing and industrial production, forced the US Dollar Index to slump to its lowest level in seven weeks at 97.50. On the other hand crude oil prices provided further boost to CAD. The USDCAD is trading below important support levels of 1.3143 and it expected to trade in the range of 1.3125-1.3160 levels. |