| Wrap Up |
| The Canadian dollar edged lower against its U.S. counterpart, pulling back from an earlier six-day high as the greenback benefited from hopes the United States and China were moving closer to a trade deal. The U.S. dollar index climbed against a basket of major currencies, including the safe-haven yen and Swiss franc, as increased appetite for risk spurred investors to seek higher-yielding currencies. C anada’s trade deficit narrowed in September to C$978 million, compared with a revised August deficit of C$1.24 billion, as imports declined more than the drop in exports. The gap between Canada’s 2- and 10-year yields narrowed by 4 basis points to a spread of 3 basis points in favor of the shorter-dated bond, the narrowest gap since July 29. |
| Levels and recommendations |
| Global stock markets steadied near record highs, supported by rising optimism about a U.S.-China trade deal this month and global business surveys indicating that tariff-hit manufacturing sentiment has troughed. The British pound was neutral as investors calculated the risks which the upcoming general election poses to Britain’s ability to sign a trade deal with the European Union before Jan. 31, its new deadline to exit the bloc. The Australian and New Zealand dollars eased as their U.S. counterpart got a lift from rising Treasury yields, while the kiwi took an extra knock from a mixed set of jobs data. The Canadian dollar is trading weaker around 1.3175 levels against the U.S. dollars, trading in a narrow range as investors awaited the outcome of trade talks between the United States and China and Canada’s jobs report loomed at the end of the week. On the other hand gains in loonie were largely offset by weak domestic PMI data for the month of September. The USDCAD pair is likely to trade in the range of 1.3143-1.3180 levels for the day. |