Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

CANADA FX DEBT-C$ climbs to more than 3-1/2-year peak vs. U.S. dollar

ForexMay 10, 2021 15:36
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

* Copper prices hit all-time high

* Canadian 10-year yield up slightly

(Adds analyst comment, updates prices)

By Gertrude Chavez-Dreyfuss

NEW YORK, May 10 (Reuters) - The Canadian dollar rose on Monday to its highest level since mid-September 2017 against a broadly weak U.S. currency, boosted overall by firmer commodity prices and the Bank of Canada beginning to tighten its monetary policy.

Analysts said those two factors had helped shield the Canadian dollar from the negative impact of the economy's worse-than-expected jobs report last Friday.

Canada's economy lost 207,100 jobs in April, more than analysts' estimates of 175,000 job losses, with declines driven by coronavirus restrictions in populous Ontario, Quebec and British Columbia, data showed. money, rising growth and supply bottlenecks are pushing speculative money out of the U.S. dollar and into the commodity complex," said Karl Schamotta, chief market strategist at Cambridge Global Payments in Toronto. "Echoes of 2008-2009 are clear."

The Canadian dollar has rallied against the greenback since the BoC flagged last month that it could begin hiking interest rates in late 2022 and cut the pace of its bond purchases.

Since roughly mid-April, the loonie has gained nearly 5%.

In afternoon trading, the loonie rose 0.2% to C$1.2094 per U.S. dollar CAD=D3 , or 82.67 U.S. cents, having earlier touched its strongest intraday level since September 2017 at C$1.2080.

The Canadian currency also rose as copper raced to a record peak on Monday as investors worried about missing out on further gains. Copper slipped in afternoon trading, however, as bullish investors who recently entered the surging market became nervous about a possible correction.

Three-month copper on the London Metal Exchange CMCU3 climbed to an all-time high of $10,747.50 a ton on Monday after breaking through a decade-old record on Friday. are Gamestopping the Canadian dollar, bidding it in synchrony with soaring base metal prices," said Schamotta, referring to the U.S. stock that was propelled by retail traders to record highs.

"The C$1.2000 threshold - a big and enticing round number - looms ahead, with a breakthrough looking more likely by the minute," he said.

Canadian government bond yields were little changed across the curve, with the 10-year CA10YT=RR up slightly at 1.515% from 1.5% late on Friday.

CANADA FX DEBT-C$ climbs to more than 3-1/2-year peak vs. U.S. dollar
 

Related Articles

Trust Dollar Rally for Now, But Bears Will Be Back
Trust Dollar Rally for Now, But Bears Will Be Back By Investing.com - Jun 18, 2021

By Yasin Ebrahim Investing.com – The dollar's sunny days are set to continue for quite a while, but the Fed's path will eventually turn murky again to bring the bears out of...

Dollar Extends Gains; Set For Large Weekly Gain
Dollar Extends Gains; Set For Large Weekly Gain By Investing.com - Jun 18, 2021

By Peter Nurse Investing.com - The dollar edged higher in early European trade Friday, continuing to benefit from Wednesday’s surprise move by the Federal Reserve in bringing...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email