| Wrap Up |
| The Canadian dollar edged higher against the greenback as risk sentiment improved, but held in the middle of its tight recent range as investors continued to focus on the fallout of the U.S.-China trade war. The US and China sought to ease tensions, with Beijing calling for calm and U.S. President Donald Trump predicting a trade deal after markets fell in response to new tariffs from both countries. That boosted risk sentiment, sending stock prices higher, and gave a modest boost to the Canadian currency. Ongoing concerns about the trade dispute, however, may cap further gains. Canadian government bond prices were higher across the yield curve, with the two-year bond up 15.5 Canadian cents to yield 1.359% and the 10-year bond rising 105 Canadian cents to yield 1.171%. |
| Levels and recommendations |
| Global shares were mixed as investors seemed slightly more hopeful again about the potential for progress in the costly trade war between the U.S. and China. The euro is trading at 1.11 levels after German final Q2 GDP figures noted the economy contracted 0.1% inter-quarter and came in flat on a yearly basis. The British pound is trading above 1.23 mark as it is further supported by the fact that the UK opposition Labour party may be looking towards passing a law to stop a no-deal outcome instead of pursuing the course of a no-confidence motion. The Canadian dollar is trading stronger at 1.3230 levels after US President Donald Trump said that he was confident that China was sincere about their willingness to make a trade deal with the US. The crude oil prices got boost as market sentiments improved after Trump likely to make a trade deal with EU without needing to impose tariffs on European car imports. Further movement in USDCAD pair will largely depend on US Consumer Confidence report and the Federal Housing Price Index data. |