| Wrap Up |
| The Canadian dollar was little changed against the greenback, holding near an earlier three-month high as investors grew optimistic on a U.S.-China trade deal and ahead of an interest rate decision this week from the Bank of Canada. The S&P 500 hit a record high as a more civil tone between the United States and China lifted hopes for a possible trade deal and investors looked toward a Fed rate cut. The BoC has left its benchmark interest rate on hold this year at 1.75% as the domestic economy added jobs at a robust pace and inflation stayed close to its 2% target. The central bank is expected to wait until the first quarter of next year before cutting rates. Canadian government bond prices were lower across the yield curve, with 2-year bond down 9.5 Canadian cents to yield 1.71% and the 10-year bond falling 74 Canadian cents to yield 1.619%. |
| Levels and recommendations |
| Global stocks hovered near a 15-month high underpinned by cautious hopes over a China-U.S trade deal and expectations of another dose of policy stimulus from the Federal Reserve, with safe havens such as gold and yen on the back foot. The British pound, meanwhile, wobbled briefly as Britain looked set for a snap December election, with the recent surge on hopes of a smooth Brexit looking capped by the outside risks that the various election outcomes could bring to that scenario. The euro is trading flat around 1.11 mark after US CB Consumer Confidence missed with 125.9 points. On the other hand US President Trump said the US and China are ahead of schedule in trade talks which capped the gains for euro. The Canadian dollar is trading weak around 1.3065 levels after strong US home sales data. Apart from weakness in crude oil prices investors are repositioning their positions ahead of Wednesday FOMC decision outcome and BoC policy update. The USDCAD pair is expected to trade in the range of 1.3055-1.3075 levels for the day. |