| Wrap Up |
| The Canadian dollar edged lower against its U.S. counterpart, giving up some gains from the last two sessions, as increased global political tensions stir investor worries about risky currencies like the loonie. Markets are concerned about Argentina as voters signaled they could reject market-friendly President Mauricio Macri at an election in October and return the country to interventionist economics. Meanwhile, the price of oil, one of Canada’s major exports, was little changed as expectations that major producers would continue to reduce global supplies ran into worries about sluggish growth in crude demand due to the U.S.-China trade war. The two-year bond rose 10.5 Canadian cents to yield 1.332% and the 10-year rose was up 73 Canadian cents to yield 1.198%. |
| Levels and recommendations |
| The US dollar index is trading stronger at 97.56 levels as inflation figures for the month of July came in above expectations, showing CPI rising at a monthly 0.3% and 1.8% from a year earlier. The euro is trading around 1.1190 levels as bullish attempts in the pair look flimsy amidst ECB’s preparations for a fresh wave of monetary stimulus in its September meeting. The British pound is trading flat around 1.2075 levels as the number of people claiming jobless benefits rose by 28k in July, against expectations of a 32k increase and +31.4k seen previously. The claimant count rate steadied at 3.2%. The Canadian dollar is trading flat around 1.3225 levels after making a low of 1.3290 for the day as the latest headlines surrounding the US-China trade dispute revived hopes of sides making progress toward an agreement. On the other hand the crude oil price is clinging to small gains ahead of US crude oil inventories data which provided some support to loonie. The USDCAD pair observed some fresh supply at 1.3290 levels and is expected to trade in the range of 1.3200-1.3250 levels for the day. |