| Wrap Up |
| The Canadian dollar edged higher against its U.S. counterpart, recovering from a two-month low it touched earlier, as investors awaited domestic economic data expected this week. The rise for the loonie came as the price of oil, one of Canada’s major exports, steadied on optimism that U.S.-China trade tensions will ease and hopes that major economies will take stimulus measures to ward off a possible economic slowdown. Oil prices had earlier fallen after the OPEC cut its forecast for global oil demand growth in 2020. Canadian factory sales decreased by 1.2% in June from May on lower petroleum and coal product sales, domestic data showed, although the decline was less than the 1.7% forecast. Canadian government bond prices were higher across the yield curve, with the two-year bond up 3 Canadian cents to yield 1.343% and the 10-year bond rising 22 Canadian cents to yield 1.165%. |
| Levels and recommendations |
| Global stocks rallied as hopes for more monetary and fiscal stimulus helped assuage worries about global recession, political turmoil in Italy and endless trade wars. Traders are waiting for the Federal Reserve’s annual Jackson Hole symposium later this week and a Group of Seven summit this weekend for clues on what steps policymakers will take to boost economic growth. The euro is trading flat around 1.1100, in familiar ranges. Italian President Mattarella will explore if a new government can be formed after PM Conte resigned. The Canadian dollar is trading stronger at 1.3270 levels after stronger than expected domestic consumer inflation for the month of July. The ongoing bullish run in crude oil prices provided a strong boost to the commodity-linked currency loonie along with mixed readings from the BoC’s core CPI helped limit the downside of CAD. The USDCAD pair is expected to trade in the range of 1.3245-1.3300 levels for the day |