| Wrap Up |
| The Canadian dollar edged lower against its U.S. counterpart , giving back gains from the day before when investors worried about U.S. political uncertainty. The U.S. dollar index recovered against a basket of major currencies after being hit on Tuesday by the launch of a formal impeachment inquiry against U.S. President Donald Trump. Meanwhile, Canada’s Jagmeet Singh, facing a rout of his left-wing New Democratic Party (NDP) in next month’s election, may have revived his party’s fortunes with his emotional response to Prime Minister Justin Trudeau’s blackface picture. Canadian government bond prices were mixed across the yield curve, with the two-year bond down 0.5 Canadian cent to yield 1.522% and the 10-year bond rising 3 Canadian cents to yield 1.304%. The 10-year yield touched its lowest intraday level since Sept. 6 at 1.289%. |
| Levels and recommendations |
| Positive noises from China on U.S. trade talks lifted Global stocks and snuffed out a modest rally in safe-haven assets that had dominated in Asia. The euro hitting a 28-month low also helped euro zone bond markets as traders chewed over the third German resignation from the European Central Bank’s board since 2011. The biggest currency riser of the day was the New Zealand dollar, which climbed 0.6% to $0.6305 after the head of the country’s central bank said it was unlikely to need unconventional stimulus measures. The Canadian dollar is trading strong around 1.3250 levels due to lower crude oil prices making it difficult for loonie to continue gather bullish momentum. On the other hand US GDP real economy expanded by 2% in the second quarter though the contribution from business and household investments were revised lower. The USDCAD pair is expected to trade in the range of 1.3224-1.3290 levels for the day. |