Highlights:

The dollar index (KTM Symbol: USDX) added modest gains 0.30% against most of the G10 currencies except Canadian Dollar, with U.S equity index futures rallied 0.90% on the third straight session. US 10Yr Treasury Yields gained three basis points to 2.73.

FX: GBP, NZD, SEK, EUR, and DKK lost nearly 0.5% each, but loonie rallied 0.30% on strong oil prices.
CAD enjoys a different story, better bid against GBP of 0.70%.

Commodities: Brent oil rallied further 2.00% overnight on US-China optimism, but unable to breach Monday’s high. So far, Brent oil has capped by 23.6% fib reaction.
Commodities: Gold and Platinum fell 0.30% each, but Silver rebounded from intraday low, currently trading with modest gains 0.05%. Besides Platinum is writing a different story, up by 2.30%.

Copper up 0.50%, manage to 200MA (Weekly) and 50MA (monthly), so far. Limited downside expected.

The USD trading behavior over the past weeks suggests the dollar strength likely to come to an end. Besides Gold and Silver prices will rise further; moreover, we focus more on Platinum.

What’s on today?
Key events to watch for the day ahead includes US-China trade talks, Germany Nov trade data, BOC policy meeting and Fed December meeting minutes .

BOC policy preview: We and the market expect the BOC will maintain its target for the overnight rate at one ¾ percent in the upcoming meeting. We focus on the Central Bank’s outlook for the local economy, inflation and language including a projection which will be published in the MPR. Mainly we focus on the Bank’s growth and inflation outlook.

Chart of the day: USDCAD. Take profit action required. 

It is important to always keep in mind the risks involved in trading with leveraged instruments.

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