| Wrap Up |
| The Canadian dollar was nearly unchanged against the greenback, pulling back from an earlier three-month high as investors turned their attention to interest rate decisions next week by the Bank of Canada and the U.S. Federal Reserve. The Bank of Canada is seen leaving its benchmark interest rate on hold at 1.75% on Oct. 30 and over the coming months as the domestic economy shows resilience and the election of a minority federal government adds to prospects of increased fiscal spending. The steady profile for the loonie came as Canada Mortgage and Housing Corporation, the country’s national housing agency, said that the housing market is expected to recover in the next two years after recent declines in new construction, sales and prices. Canadian government bond prices were lower across the yield curve, with the two-year bond down 2 Canadian cents to yield 1.634% and the 10-year bond falling 5 Canadian cents to yield 1.524%. |
| Levels and recommendations |
| Geopolitical tensions, muted economic data and mixed earnings stymied global stocks with sterling languishing near a one week lows amid a new bout of Brexit anxiety. The US dollar index traded flat against a basket of six major currencies while the euro steadied after falling to a one-week low against the U.S. dollar in the previous session on the ECB leaving the door open for more monetary policy easing, but keeping interest rates unchanged. The British pound edged down to $1.2823, extending a 0.5% drop, after European Union failed to set a date for Britain’s departure from the bloc while the UK parliament squabbled over Prime Minister Boris Johnson’s call for a December election to break the deadlock. The Canadian dollar is trading stronger around 1.3065 levels as crude oil prices continues its upward momentum as OPEC deciding for an additional output cut in December. There won’t be any significant macroeconomics data release from Canada or the United States in the remainder of the day. The USDCAD pair is expected to trade in the range of 1.3050-1.3100 levels for the day reacting mostly to changes in crude oil prices. |