| Wrap Up |
| The Canadian dollar was little changed against its U.S. counterpart, with the currency pulling back from an earlier 10-day high as investors weighed U.S. political uncertainty. Stocks fell, while safe-haven assets such as the U.S. dollar and Treasuries rose after a congressional panel released a whistleblower complaint that accused President Donald Trump of pressing a foreign government to investigate a potential rival in next year’s presidential election. Relative strength for the loonie came as data from Statistics Canada showed that Canadian average weekly earnings rose by 2.7% year-over-year in July after a 2.1% gain in June and that the number of non-farm payroll employees increased by 75,400. The two-year bond rose 3.5 Canadian cents to yield 1.577% and the 10-year bond was up 40 Canadian cents to yield 1.362%. On Wednesday, the 10-year yield hit its lowest intraday level since Sept. 6 at 1.289%. |
| Levels and recommendations |
| Global shares erased losses, buoyed by a wave of optimism that U.S.-China trade tensions might be easing as markets largely brushed off concerns about possible impeachment moves against U.S. President Donald Trump. The euro was pinned at its lowest level since May 2017 as a steady drip of negative economic data this week sapped investor demand for the single currency, further helping export-oriented European stocks. The British pound was a other big loser in early London trading, weakening 0.3% after Bank of England policymakers Michael Saunders signalled a possible rate cut amid Brexit uncertainty and disappointing global growth. The Canadian dollar is trading stronger at 1.3245 levels due to market reaction to the ongoing political drama in the United States, related to an impeachment inquiry against President Donald Trump. The USDCAD pair is expected to trade in the range of 1.3224-1.3290 levels for the day. |