CANADA FX DEBT-Canadian dollar notches 3rd straight weekly gain as jobs surge

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 (Adds strategist quotes and details throughout; updates prices)
    * Canadian dollar strengthens 0.6% against the greenback
    * Touches its strongest since July 30 at 1.2447
    * Canada adds 157,000 jobs in September
    * Canadian 10-year yield hits a near 7-month high at 1.634%

    By Fergal Smith
    TORONTO, Oct 8 (Businesshala) - The Canadian dollar on Friday
strengthened to its highest level in more than two months
against the greenback as strong domestic jobs data supported the
Bank of Canada's forecast for the economy to pick up.
    The loonie        was trading 0.6% higher at 1.2470 to the
greenback, or 80.19 U.S. cents, after moving through its 200-day
moving average at 1.2512 and touching its strongest level since
July 30 at 1.2447.
    The move was "a pretty firm affirmation of investor
sentiment toward the Canadian dollar and the Canadian economy,"
said Michael Goshko, corporate risk manager at Western Union
Business Solutions.
    "We are now experiencing the surge in growth that the Bank
of Canada had forecast many months ago."
    The Canadian economy posted a monster gain of 157,000 jobs
in September, pushing employment back to its pre-pandemic
levels.             
    The Bank of Canada has projected that the economy will
rebound in the second half of the year after a surprise
contraction in the second quarter. It is due to make an interest
rate decision on Oct. 27 when it could further cut its bond
purchase program.
    The data "likely seals the deal for another taper from the
Bank of Canada later this month," said Royce Mendes, a senior
economist at CIBC Capital Markets.
    For the week, the loonie was up 1.4%. It was the third
straight week of gains, helped by surging oil prices.
    U.S. crude oil futures        settled 1.3% higher at $79.35
a barrel as an energy crunch showed no signs of easing, while
the U.S. dollar        was little moved by a disappointing U.S.
employment report.                         
    Canadian government bond yields were higher across the
curve. The 10-year             touched its highest since March
18 at 1.634% before dipping to 1.628%, up 6 basis points on the
day.

 (Reporting by Fergal Smith; Editing by Ken Ferris and Alistair
Bell)
  
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