Daily Currency Update

USD - US Dollar

Last The growing possibility of a partial US federal government shutdown has triggered a wave of long dollar position liquidations. It is depreciating against all G10 currencies and showing mixed performance against the currencies of emerging markets. The shutdown is projected to decrease GDP by 0.2% per week and will affect the timetable of data releases, including the upcoming week's jobs report. Moody's, the final major rating agency to assign a AAA rating to the US, has recognized that a government shutdown would adversely impact credit ratings.

Concurrently, depleted US oil reserves have driven oil prices upward, with November WTI reaching $95 a barrel before retracting. US index futures are exhibiting slight variations. The bond market is experiencing a continued sell-off. European benchmark 10-year yields are 6-8 basis points higher, while Gilt yield has risen by 10 basis points. The yield on the 10-year US Treasury has increased by two basis points to 4.63%.

CAD - Canadian Dollar

The combination of a weaker US dollar and elevated rates has kept gold close to its recent low, around $1872. The US dollar reached its peak against the Canadian dollar yesterday, nearly touching the 20-day moving average at CAD1.3545, before declining. Subsequent selling has brought the greenback to around CAD1.3480 today. Immediate support might be observed in the CAD1.3450-60 region. Observe the USD/CAD trends.