| Wrap Up |
| The Canadian dollar strengthened against the greenback, paring its decline since October as optimism rose on U.S.-China trade talks and after a deal was reached to end a railway strike that threatened to slow Canada’s economic growth. U.S. stocks rose to a record high after President Donald Trump said the United States and China were close to an agreement on the first phase of a deal. Canada’s longest railroad strike in a decade ended as Canadian National Railway Co, the country’s biggest railroad, reached a tentative agreement with workers. Canadian government bond prices were higher across a flatter yield curve in sympathy with U.S. Treasuries. The two-year bond rose 3 Canadian cents to yield 1.567% and the 10-year bond was up 23 Canadian cents to yield 1.437%. |
| Levels and recommendations |
| The US dollar rose helped by upbeat U.S. data even as continued uncertainty about the outlook for a preliminary U.S.-China trade agreement and a shortened holiday week in the United States kept currency moves muted. The British pound was a touch firmer, recovering from early losses following the third poll in a row that showed a narrowing lead for the governing Conservative Party before Britain’s Dec. 12 election. The Australian dollar looked vulnerable as investors rushed to price in an extra policy easing for next year after the country’s central bank signalled there was more room to cut rates than previously thought. The Canadian dollar is trading weak around 1.3284 levels., holding near an earlier five-day high as optimism that a trade deal would be reached between the US and China helped support global stocks. On the other hand strong US durable goods and GDP data together with reduced crude oil prices due to an increase in US crude oil inventories is putting some weight on the CAD. The pair is expected to trade in the range of 1.3250-1.3315 levels. |