| Wrap Up |
| The Canadian dollar weakened to a near six-week low against the greenback, on continued concerns over an interest rate cut following dovish comments by a senior BoC official on Tuesday. Bank of Canada Senior Deputy Governor Carolyn Wilkins said the global economy is facing immense challenges that could spill over into Canada and that the central bank has room to move interest rates lower. Money markets see about a 20% chance of a BoC interest rate cut at the central bank’s next policy meeting on Dec. 4. Chances of a cut in January are seen at more than 50%. Canadian government bond prices were higher across a flatter yield curve in sympathy with U.S. Treasuries. The two-year bond rose 1 Canadian cent to yield 1.512% and the 10-year bond was up 16 Canadian cents to yield 1.428%. |
| Levels and recommendations |
| The US dollar was a touch weaker against other major currencies, with investors fixated on the latest developments in a bitter 16-month long trade dispute between the United States and China that has dealt a blow to the world economy. The British pound inched higher after two days of losses as financial markets awaited an election manifesto from the opposition Labour Party, with the ruling Conservatives appearing to still hold a hefty lead in opinion polls. Brazil’s central bank president Roberto Campos Neto said intervention in an otherwise free-floating and flexible exchange rate regime is a policy option only if the lack of liquidity demands it. The Canadian dollar is trading around 1.3270 levels against USD, on continued concerns over an interest rate cut following dovish comments by a senior BoC official. Meanwhile, an increase in crude oil prices has provided some support to loonie. TheUSDCAD pair has observed fresh supplies above 1.33 levels and it is expected to trade in the range of 1.3250-1.3290 levels for the day. |