Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

CANADA FX DEBT-C$ firms as potential U.S. political gridlock weighs on dollar

Published 2018-11-07, 04:13 p/m
Updated 2018-11-07, 04:20 p/m
© Reuters.  CANADA FX DEBT-C$ firms as potential U.S. political gridlock weighs on dollar

© Reuters. CANADA FX DEBT-C$ firms as potential U.S. political gridlock weighs on dollar

* Canadian dollar rises 0.1 percent against greenback

* Price of U.S. oil falls 0.9 percent

* Canadian bond prices trade mixed across a flatter yield curve

By Fergal Smith

TORONTO, Nov 7 (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Wednesday as the greenback broadly fell after U.S. congressional elections, but gains for the loonie were tempered by lower oil prices.

At 3:51 p.m. (2051 GMT), the Canadian dollar CAD=D4 was trading 0.1 percent higher at 1.3113 to the greenback, or 76.26 U.S. cents. The currency touched its strongest level since Friday at 1.3057 before paring its gains.

The U.S. dollar .DXY slumped to its lowest intraday in more than two weeks against a basket of major currencies after the election outcome of a U.S. Congress split between Republicans and Democrats raised expectations that any major fiscal policy boost to the economy is unlikely for now. gridlock, you probably don't have as much scope for stimulus as you might otherwise have had," said David Stonehouse, head of fixed income, North American & specialty equities at AGF Investments Inc. "I think it is a more benign outcome for Canada than potentially a Republican sweep might have been when it comes to trade relations."

Canada sends about 75 percent of its exports to the United States. It has reached a deal with the U.S. and Mexico to revamp the North American Free Trade Agreement, but the agreement included no assurance that Washington would lift punitive measures it imposed on Canadian steel and aluminum in June. price of oil, one of Canada's major exports, continued a recent slide after surging U.S. crude output hit another record and domestic inventories rose more than expected. crude oil futures settled 0.9 percent lower at $61.67 a barrel.

"It is always in the back of people's minds that, to some extent at least, Canada is a petro-currency, and undeniably oil has been soft recently and that hasn't helped the Canadian dollar's cause," Stonehouse said.

Canadian purchasing activity expanded at a faster pace in October as measures of employment and inventories rose, according to Ivey Purchasing Managers Index data. The seasonally adjusted index rebounded to 61.8 after having slumped in September to 50.4, its lowest in more than two years. government bond prices were mixed across a slightly flatter yield curve. The 10-year CA10YT=RR rose 4 Canadian cents to yield 2.529 percent.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.