Daily Commentary & Market Insights, Dec.17, 2019

Good morning,

White house advisor Larry Kudlow declared the US/China trade deal “is absolutely completed”. The phase one deal is said to be signed in January but with no specific date given by China, some uncertainty remains. The initial pullback in favour of the CAD as a commodity currency has subsided. While the CAD still remains near one month highs vs USD, the lack of concreate optimism from China about the phase one deal coming into play is leaving some uncertainty in the market. We look to the Bank of Canada tomorrow for inflation data. The year over year CPI figure estimate and previous figure is at 1.9%, just shy of the BoC’s 2% target. USD/CAD support is levelling off at 1.3115 from previous Nov 5 low with resistance of 1.3233 representing a 200, 100 and 21 daily moving average level.