| Wrap Up |
| The Canadian dollar climbed to a near three-month high against its U.S. counterpart as investors became more optimistic on global trade and millions of Canadians cast their ballots in the country’s 43rd general election. The benchmark S&P 500 stock index rose within striking distance of a record high as further signs of progress toward a resolution of the trade dispute between the United States and China helped boost shares in trade-exposed and economically sensitive sectors. On Oct. 30, investors expect the Fed to cut its overnight lending rate by a quarter of a percentage point to a range of 1.50% to 1.75%. The same day, the Bank of Canada is seen leaving its target for the overnight rate at 1.75%. Canadian government bond prices were lower across the yield curve in sympathy with U.S. Treasuries, with the 10-year bond falling 15 Canadian cents to yield 1.561%. Last Thursday, the 10-year yield reached a three-month high at 1.608%. |
| Levels and recommendations |
| The US dollar index rose against the pound and euro as uncertainty spread ahead of the British parliament’s vote on the Withdrawal Agreement Bill which will shine light on when and how Britain will exit the EU. The British pound is down 0.35% to $1.291 in morning trade after Johnson told parliament that if it delayed his Brexit legislation he would abandon his attempt to ratify the deal to leave the European Union and push for an election instead The euro is down 0.19% versus the dollar, though remains up 2.09% this month, driven mostly by recent Brexit developments, as well as by trade disputes between the United States and China The Canadian dollar weakened against its U.S. counterpart after Prime Minister Justin Trudeau hung onto power after a tight election on Monday that saw his government reduced to a minority. On the other hand poor domestic retail sales data weigh on the CAD. The loonie got some support with increase in crude oil prices. The USDCAD pair is expected to trade in the range of 1.3075-1.3115 levels for the day. |