| Wrap Up |
| The Canadian dollar was little changed against its U.S. counterpart, keeping to a narrow trading range as investors took stock of the Bank of Canada’s more dovish tone and influential domestic data loomed in the coming days. Canada’s central bank left its benchmark interest rate unchanged at 1.75% last week, but cut its global and domestic growth forecasts as it worried that Canada’s economy would be “increasingly tested” by trade uncertainty. The steady profile for the loonie came as the U.S. dollar rallied against a basket of major currencies and as optimism the United States and China would reach a trade deal helped push shares on Wall Street to a record high. The two-year bond fell 8.5 Canadian cents to yield 1.597% and the 10-year bond was down 76 Canadian cents to yield 1.526%. |
| Levels and recommendations |
| Global shares climbed back towards record highs and safe-haven bonds tumbled, as hopes that Washington may roll back some of the tariffs it has imposed on Chinese imports rekindled optimism about the global economic outlook. South Africa’s rand edged firmer early, extending a rally sparked by Moody’s decision to keep the country’s credit rating at investment grade despite a dismal budget last week showing a fast-rising budget deficit and public debt. The Brazilian Real got an additional boost from expectations of new market-friendly reforms. President Jair Bolsonaro planned to accompany Economy Minister Paulo Guedes on a visit to Congress to propose new measures to tackle a budget deficit. The Canadian dollar is trading higher against its U.S. counterpart as domestic data showed a narrowing trade deficit. On the other hand crude oil prices continues its upward momentum as OPEC agrees to reduce oil output in its upcoming meeting in December, providing additional boost to loonie. The USDCAD pair is likely to trade in the range of 1.3125-1.3155 levels for the day. |