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CANADA FX DEBT-Canadian dollar notches 10-day high as stimulus hopes boost stocks

Published 2020-10-01, 09:34 a/m
© Reuters.
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* Canadian dollar rises 0.1% against the greenback

* Price of U.S. oil falls 2.9%

* Canadian building permits rise 1.7% in August

* Canadian bond yields rise across a steeper curve

TORONTO, Oct 1 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Thursday as investors grew more optimistic about additional U.S. stimulus, but the currency gave up some of its gains as oil fell.

U.S. stock index futures rose after the Trump administration said it had proposed a new coronavirus fiscal aid package to House of Representatives Democrats worth more than $1.5 trillion. sends about 75% of its exports to the United States, including oil. U.S. crude CLc1 prices were down 2.9% at $39.05 a barrel as a rising number of coronavirus cases dampened the demand outlook. loonie CAD= was trading 0.1% higher at 1.3304 to the greenback, or 75.17 U.S. cents, having touched its strongest intraday level since Sept. 21 at 1.3279. Last month, the loonie fell 2.1%, ending a five-month streak of gains.

The value of Canadian building permits rose by 1.7% in August from July, Statistics Canada said. Still, permits were down 11.2% compared with the same month in 2019.

Canada's export development agency predicted global growth of 6.6% in 2021 after a 4.3% decline this year amid the coronavirus pandemic, but said the domestic energy and tourism sectors would suffer. government bond yields were higher across a steeper curve in sympathy with U.S. Treasuries. The 10-year CA10YT=RR was up 3.4 basis points at 0.600%, trading near its highest in three weeks.

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