| Wrap Up |
| The Canadian dollar strengthened to its highest in more than one week against its U.S. counterpart, as rising support among Democratic lawmakers to pursue impeachment of U.S. President Donald Trump weighed on the greenback. The crude oil prices, one of Canada’s major exports, fell after Trump rekindled fears that the Sino-American trade conflict, which has crimped energy demand. The gain for the loonie came after stronger-than-expected wholesale trade data supported bets that the BoC would leave interest rates unchanged this year. Chances of a rate cut by December have fallen to about 30% from more than 90% earlier. Canadian government bond prices were higher across a flatter yield curve in sympathy with U.S. Treasuries. The two-year bond rose 8 Canadian cents to yield 1.522% and the 10-year bond was up 67 Canadian cents to yield 1.305%. |
| Levels and recommendations |
| Global stocks fell to a two-week low and risk assets withered after U.S. lawmakers called for an impeachment inquiry into President Donald Trump, raising the prospects of prolonged political uncertainty amid a fresh rise in trade tensions. The British pound fell about 1% in its biggest daily decline since the end of July as uncertainty over Britain’s departure from the European Union after the Supreme Court ruled PM Boris Johnson had unlawfully suspended parliament. The move by Democrats in the U.S. House of Representatives to impeach Trump has exacerbated market anxieties over global recession risks and the U.S.-China trade dispute. The Canadian dollar is trading weak around 1.3273 levels as crude oil prices fell for the second consecutive session on concerns about global economic growth and receding fears of a further escalation of geopolitical tensions in the Middle East. Further movement in the USDCAD pair will depend on the outcome of crude oil inventories data due today. The USDCAD pair is expected to trade in the range of 1.3224-1.3290 levels for the day. |