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CORRECTED-CANADA FX DEBT-Canadian dollar climbs to 3-week high after strong jobs data

Published 2020-10-09, 10:05 a/m
© Reuters.
USD/CAD
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CL
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CA10YT=RR
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(Corrects price of oil in sixth paragraph)

* Canadian dollar rises 0.4% against the greenback

* Canada adds 378,200 jobs in September

* Loonie touches a 3-week high at 1.3132

* Canadian bond yields were little changed across the curve

TORONTO, Oct 9 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Friday and was on track for its biggest weekly advance in four months as domestic data showed a stronger-than-expected jobs gain and the prospect of U.S. stimulus boosted risk appetite.

Canada added 378,200 jobs in September and the unemployment rate fell to 9.0%, handily beating analyst expectations, as children returned to school and the economy continued to reopen from coronavirus shutdowns, Statistics Canada said.

Shares rose globally .WORLD as expectations grew of a Democratic victory in U.S. elections next month that could lead a big economic stimulus. Canada sends about 75% of its exports to the United States. Canadian dollar CAD= was trading 0.4% higher at 1.3138 to the greenback, or 76.12 U.S. cents. The currency touched its strongest intraday level since Sept. 16 at 1.3132.

For the week, the loonie was up 1.3%. That would be its biggest advance since early June, helped by a rally in the price of oil, one of Canada's major exports, on supply cuts caused by a storm in the Gulf of Mexico and a strike of offshore workers in Norway. crude oil futures CLc1 gave back some of this week's rally on Friday, falling 0.5% to $40.99 a barrel.

Canadian government bond yields were little changed across the curve, with the 10-year yield CA10YT=RR steady at 0.623%. On Thursday, the 10-year touched its highest intraday in more than five weeks at 0.639%.

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