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CANADA FX DEBT-C$ strengthens as jobs data eyed; Fed pick supports
November 2, 2017 / 8:48 PM / 19 days ago

CANADA FX DEBT-C$ strengthens as jobs data eyed; Fed pick supports

    * Canadian dollar at C$1.2808, or 78.08 U.S. cents
    * Bond prices higher across the yield curve
    * C$ firms to one week high

 (New throughout, updates prices, market activity and
commentary, adds information about Fed pick)
    By Solarina Ho
    TORONTO, Nov 2 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Thursday, adding to its more
stable profile this week as investors looked toward Friday's
employment data on both sides of the border.
    Confirmation that President Donald Trump is tapping Fed
Governor Jerome Powell to succeed Janet Yellen as the new head
of the U.S. Federal Reserve also provided some support for the
Canadian dollar, which reached its strongest level in a week.
            
    The loonie has fallen more than 6 percent since posting a
more than two-year high in September at C$1.2063. Analysts said
it has found support around C$1.2900, near the 50 percent
retracement of the currency's rapid appreciation from May to
September.
    "The move up was over-extended," said David Bradley,
director of foreign exchange trading at Scotiabank, who does not
expect the loonie to weaken much further going into Friday's job
numbers for October.
    "I think you'd need a really strong U.S. print or a really
weak Canadian print to see USD/CAD trade back up to recent
highs. It seems like there's solid offers every time we trade up
toward C$1.29," he said.
    On Friday, the loonie hit its weakest in more than three
months at C$1.2916, pressured by data which pointed to slower
growth in Canada's economy in the third quarter after a rapid
expansion in the first half.
    September trade data for Canada is also due on Friday.
    At 4:00 p.m. ET (2000 GMT), the Canadian dollar          was
trading at C$1.2808 to the greenback, or 78.08 U.S. cents, up
0.4 percent.
    The currency traded between C$1.2800 and C$1.2876 during the
session.
    Prices of oil, one of Canada's major exports, inched toward
two-year highs as supply cuts by the Organization of the
Petroleum Exporting Countries and other major exporters
tightened the market and drained inventories.             
    Bank of Canada Governor Stephen Poloz said on Wednesday that
while monetary policy decisions will have an effect on the
Canadian dollar, oil prices will have the biggest long-term
impact on the currency.             
    Canadian government bond prices were higher across the yield
curve in sympathy with U.S. Treasuries. The two-year           
firmed One Canadian cent to yield 1.411 percent and the 10-year
            gained 14 Canadian cents to yield 1.958 percent.

 (Reporting by Solarina Ho; Additional reporting by Fergal
Smith; Editing by Phil Berlowitz and David Gregorio)
  
 

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