TORONTO (Reuters) - The commodity-linked Canadian dollar advanced to its strongest level in nearly six months against the greenback on Thursday as data from the U.S. Labor Department supported optimism on global economic recovery.
The number of Americans seeking unemployment benefits dropped below 1 million last week for the first time since the start of the COVID-19 pandemic in the United States, signaling a recovery in the job market was on track.
Canada sends about 75% of its exports to the United States, including oil. U.S. crude oil futures (CLc1) were down 0.1% at $42.62 a barrel as the International Energy Agency lowered its 2020 oil demand forecast following unprecedented travel restrictions.
The Canadian dollar
Canada's manufacturing sales report for June is due on Friday. Economists expect a 16.4% increase in sales, which would add to evidence of domestic economic recovery.
Canadian government bond yields were higher across the curve, with the 10-year (CA10YT=RR) rising 1.1 basis points to notch its highest level since June 11 at 0.623%.