| Wrap Up |
| The Canadian dollar strengthened against its U.S. counterpart, recovering from a six-week low it hit the day before as Bank of Canada Governor Stephen Poloz doused expectations for an interest rate cut as soon as next month. In remarks at a fireside chat organized by the Ontario Securities Commission in Toronto, Poloz said he thought Canada’s monetary conditions were about right given the current economic situation that is being challenged by global trade tensions. The gain for the loonie came as U.S. House Democrats said they ironed out some differences with the Trump administration about a trade agreement with Canada and Mexico. The 10-year bond falling 39 Canadian cents to yield 1.474%. On Wednesday, the 10-year yield hit its lowest intraday level in nearly six weeks at 1.394%. |
| Levels and recommendations |
| The US dollar was little changed with currencies trading in tight ranges after mixed messages from China about the trade war gave risk appetite only a limited boost, while the euro touched weekly lows on inflation data. The pound dived and is set for a weekly loss after surveys showed British business suffered its deepest downturn since mid-2016, with caution rising before a Dec. 12 general election. The Australian and New Zealand dollars were left to languish with investors frazzled by a week full of conflicting headlines on the Sino-U.S. trade dispute, while bonds were content to sit on their recent hefty gains. The Canadian dollar strengthened against its U.S. counterpart, paring some of this week’s decline, as investors grew more optimistic on a U.S.-China trade deal and after domestic data showed growth in underlying retail sales. Meanwhile, crude oil prices were boosted by expectations major producers would extend production cuts provided some additional support to loonie. |