Daily Commentary & Market Insights, Oct.31, 2019

Good morning,

Yesterday’s BoC meeting to held rates as widely anticipated. The CAD diminished in value after the announcement as BoC Governor Poloz delivered his message with a dovish tone, citing concerns from global trade tensions and a slowdown in global growth. The FED cut interest rates for a third time in a row, the initial market movement strengthened the USD with FED Chair Powell setting a high bar for any further rate cuts near term. Canada now provides the most attractive yields of all developed economies with Canadian benchmark rates higher than the US for the first time in over three years. We look to tomorrows US employment data for any breaks from consolidation between, resistance of 1.3230 and 1.3145 support levels.