After a sharp sell-off during the early London session, the US dollar managed to recover some ground against a quite resilient Canadian dollar today.

Besides the Australian and New Zealand dollar, both the Canadian dollar and the greenback are top-performing currencies today as risk appetite remained strong.

Markets are hoping for a “phase one” trade deal between the United States and China to be signed later this month after a string of optimistic comments came from trade representatives of both sides. This has underpinned risk sentiment and is likely to do so in the days ahead. Nevertheless, China has reportedly asked the US to roll back tariffs before it will proceed with the “phase one” trade agreement.

The Canadian dollar has been also supported by higher oil prices, with Brent crude up more than 1% in today’s trade. This has likely more than offset the Canadian trade balance report, which came in at -$1.0 billion — below market expectations of -$0.6 billion but better than the August data of -$1.2 billion.

From the US, we got the ISM non-manufacturing PMI which showed a strong pick up in the non-manufacturing economic activity in October. The number came in at 54.7, well above market expectations of 53.5.

From a technical standpoint, the USD/CAD pair completed a 50% correction of the recent downturn and formed candles with long upper wicks, which may signal further weakness in the short run.

While last week’s high of 1.3208 remains a strong resistance to the upside, we don’t see any meaningful support before the October 29 low of 1.3042. As of 3:08 p.m. London time, the pair traded at 1.3150. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.