Canadian dollar strengthens 0.2% against the greenback
Canadian economy grows by 0.1% in October
Price of U.S. oil rises 2.5%
Canadian 10-year yield climbs to five-week high
TORONTO, Dec 23 (Reuters) – The Canadian dollar edged higher against its U.S. counterpart on Friday, adding to this week’s gains, as oil prices rose and domestic data showed the economy growing in line with expectations in October.
The gain for the loonie came as U.S. stock index futures seesawed following data that showed U.S. inflation cooling further but not enough to discourage the Federal Reserve from driving interest rates to higher levels next year.
The Canadian dollar CAD= was trading 0.2% higher at 1.3625 to the greenback, or 73.39 U.S. cents, after moving in a range of 1.3576 to 1.3662.
For the week, the currency was on track to gain 0.6% as mixed domestic inflation data left the door open to another interest rate hike by the Bank of Canada next month.
Money markets see a greater-than-50% chance the central bank would tighten by 25 basis points at its next policy decision on Jan. 25.
The price of oil, one of Canada’s major exports, added to its gains over the past two weeks on expectations of a drop in Russian crude supply. U.S. crude CLc1 prices were up 2.5% at $79.44 a barrel.
The Canadian economy grew by 0.1% in October versus September, with another 0.1% increase in GDP seen likely in November, Statistics Canada data showed.
Separate data showed that factory sales likely gained 0.6% in November.
Canadian government bond yields were higher across the curve, tracking the move in U.S. Treasuries.
The 10-year CA10YT=RR touched its highest level since Nov. 15 at 3.176% before dipping slightly to 3.166%, up 8.5 basis points on the day.
(Reporting by Fergal Smith; editing by Jonathan Oatis)
((fergal.smith@thomsonreuters.com; +1 647 480 7446;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Source link
