| Wrap Up |
| The Canadian dollar was little changed against its U.S. counterpart, unable to reduce this week’s decline as oil prices fell and a strike at Canada’s biggest railroad threatened to weigh on the country’s economic growth. The price of oil pulled back from two-month highs as concern over U.S.-China trade talks overshadowed expectations that major producers would extend production cuts. The decline for the loonie came as the U.S. dollar was boosted by data showing U.S. factory and services activity quickened in November. Domestic data showed that retail sales fell 0.1% in September from August, matching estimates. Canadian government bond prices were mixed across a flatter yield curve, with the 2-year bond down 3 Canadian cents to yield 1.58% and 10-year bond rising 5 Canadian cents to yield 1.472%. |
| Levels and recommendations |
| Asian currency markets were shackled in a tight space, with investors content to hold most of their bets in light of uncertainty over progress made in U.S.-China trade talks. The euro held near a 10-day low after posting a weekly loss as investors remained cautious about the outlook for the euro zone economy in the near term. The British pound climbed above 10-day lows versus the dollar, as opinion polls continued to show the Conservative Party to be runaway favourite to win the Dec. 12 election with a pledge to implement Brexit and halt 3-1/2-years of political uncertainty. The Canadian dollar was little changed against its U.S dollar as domestic data showing increased wholesale trade offset signs that a strike at Canada’s biggest railroad was set to continue. On the other hand crude oil prices are under pressure by more dovish stance by BoC which further capped the upside for loonie. Investors are closely watching the GBP numbers due on Friday which will further decide the movement in CAD and BoC decision on interest rate. |