Views Article – Sharenet Wealth

Forex, News

C$ notches 9-month high, underpinned by BoC steady rate outlook

* Canadian dollar rises 0.3% against the greenback * For the week, the loonie was up 0.4% * Price of U.S. oil increases 0.2% * Canada’s 10-year yield touches a 7-week high at 1.649% TORONTO, July 12 (Reuters) – The Canadian dollar strengthened to a near nine-month high against its U.S. counterpart on Friday, adding to its gains since mid-week when the Bank of Canada made clear it had no intention of easing monetary policy. The signal from Canada’s central bank that interest rates are on hold has contrasted with dovish guidance from the U.S. Federal Reserve. Investors are betting that the Fed will cut interest rates at the end of this month and ease further by October. At 9:22 a.m. (1322 GMT), the Canadian dollar was trading 0.3% higher at 1.3033 to the greenback, or 76.73 U.S. cents. The currency touched its strongest level since Oct. 25, last year at 1.3018. The loonie was on track to rise 0.4% for the week. It has climbed 4.7% since the start of the 2019, the best performance among G10 currencies. Adding to support for the loonie on Friday, the price of oil, one of Canada’s major exports, rose as U.S. oil producers in the Gulf of Mexico cut more than half their output because of a tropical storm and as tensions continued to simmer in the Middle East. U.S. crude oil futures were up 0.2% at $60.34 a barrel. Canadian government bond prices were mixed across a flatter yield curve, with the two-year down 0.5 Canadian cent to yield 1.608% and the 10-year rising 1 Canadian cent to yield 1.628%. Earlier in the day, the 10-year yield touched its highest since May 24 at 1.649%. (Reporting by Fergal Smith)

© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.
Array ( )