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$ holds near 10-day high as greenback broadly falls

Published 2018-02-15, 04:32 p/m
Updated 2018-02-15, 04:40 p/m
© Reuters.  CANADA FX DEBT-C$ holds near 10-day high as greenback broadly falls

© Reuters. CANADA FX DEBT-C$ holds near 10-day high as greenback broadly falls

* Canadian dollar at C$1.2485, or 80.10 U.S. cents

* Loonie touches its strongest since Feb. 5

* Oil prices rise 1.2 percent

* Canada's 5-year yield posts a more than 4-year high

By Fergal Smith

TORONTO, Feb 15 (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Thursday to hold near an earlier 10-day high, but the loonie lost ground against some other major currencies as investors bet on a shift in global capital flows.

At 4 p.m. (2100 GMT), the Canadian dollar CAD=D4 was trading 0.1 percent higher at C$1.2485 to the greenback, or 80.10 U.S. cents. The currency touched its strongest level since Feb. 5 at C$1.2466.

Against the euro, it hit its weakest intraday since February 2016 at C$1.5644.

"Capital is moving out of the Americas," said Scott Lampard, head of global markets at HSBC Bank Canada. "While Canada is appreciating versus the U.S. dollar, it is underperforming some of the other regions that are actually seeing some major (capital) inflows."

The U.S. dollar .DXY fell across the board, hitting a 15-month low against the yen, as negative sentiment around the U.S. currency outweighed a rise in 10-year Treasury yields to their highest levels in four years. general view seems to be that valuations are better in Europe, they are better in emerging markets," Lampard said.

The weaker greenback helped boost the price of oil, one of Canada's major exports. U.S. crude oil futures CLc1 settled 1.2 percent higher at $61.34 a barrel. Bank of Canada's cautious approach to further rate hikes does not mean rates will stay low forever, as policymakers also have to weigh inflationary pressures, Bank of Canada Deputy Governor Lawrence Schembri said. government bond prices were little changed across the yield curve, with the five-year CA5YT=RR flat to yield 2.154 percent and the 10-year CA10YT=RR rising 1 Canadian cent to yield 2.373 percent.

The five-year yield posted its highest intraday since September 2013 at 2.173 percent.

Resales of Canadian homes dropped 14.5 percent in January from December to the lowest monthly level in three years as tighter mortgage rules doused demand, the Canadian Real Estate Association said. added 10,700 jobs in January, driven by hiring in construction and leisure and hospitality, according to a report from ADP. country's manufacturing sales report for December is due on Friday.

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.