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

CANADA FX DEBT-C$ notches 3-week high as job gains boost rate hike bets

ForexJul 06, 2018 16:50
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. CANADA FX DEBT-C$ notches 3-week high as job gains boost rate hike bets

* Canadian dollar at C$1.3107, or 76.30 U.S. cents

* Canada adds 31,800 jobs in June

* Price of U.S. oil rises 1.2 percent

* Bond prices higher across a flatter yield curve

By Fergal Smith

TORONTO, July 6 (Reuters) - The Canadian dollar strengthened to a three-week high against its U.S. counterpart on Friday as oil prices rose and data showing a stronger-than-expected rise in domestic jobs raised expectations for a Bank of Canada interest rate hike next week.

The Canadian economy added 31,800 jobs in June, more than the 24,000 gain that analysts had predicted. of a Bank of Canada interest rate increase at the July 11 announcement climbed to more than 90 percent from 88 percent before the data, the overnight index swaps market indicated. BOCWATCH

"The market's view is that the bank will raise rates," said Blake Jespersen, managing director, foreign exchange sales at BMO Capital Markets. "You've also had oil prices steadily climbing higher ... so that's also helping the Canadian dollar."

U.S. crude oil futures CLc1 settled 1.2 percent higher at $73.80 a barrel. Oil is one of Canada's major exports.

At 4 p.m. EDT (2000 GMT), the Canadian dollar CAD=D4 was trading 0.2 percent higher at C$1.3107 to the greenback, or 76.30 U.S. cents. The currency touched its strongest since June 14 at C$1.3077.

Gains for the loonie came despite the United States and China slapping tit-for-tat duties on $34 billion worth of each other's goods. big question for us remains will we get any escalation in the trade war between the U.S. and China over the weekend and early next week that could blow things apart," said Paul-Andre Pinsonnault, senior fixed income economist at National Bank Financial.

Canada runs a current account deficit so its economy could be hurt if the flow of trade or capital slows. The country has its own trade feud with the United States and is also in slow-moving talks to revamp the North American Free Trade Agreement.

The loonie, which rose 0.2 percent for the week, will climb over the coming year, a Reuters poll showed. But forecasters are less bullish than they were a month ago as escalating trade uncertainty competes with expected Bank of Canada rate hikes. Statscan said Canada's trade deficit in May grew to C$2.77 billion from C$1.86 billion in April. U.S. dollar .DXY fell after data showed the U.S. economy created more jobs than expected in June, but a closely watched inflation gauge rose less than forecast. government bond prices were higher across a flatter yield curve, with the 10-year CA10YT=RR rising 18 Canadian cents to yield 2.126 percent.

CANADA FX DEBT-C$ notches 3-week high as job gains boost rate hike bets
 

Related Articles

GBP Slides Following Brexit Trade Deal Worries
GBP Slides Following Brexit Trade Deal Worries By Investing.com - Oct 22, 2021

By Sam Boughedda Investing.com — The pound sterling weakened late in Friday's session after Bloomberg reported that the European Union could terminate the post-Brexit trade deal if...

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