C$ retreats from two-week high amid potential for U.S. policy gridlock
Reuters
Published Nov 04, 2020 09:38
TORONTO (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Wednesday after a tight U.S. election that could reduce prospects of a large economic stimulus package, with the currency pulling back from an earlier two-week high.
The U.S. bond market moved to price a greater chance of U.S. policy gridlock, sensing that Democrats may not have enough support in the Senate to push through the large coronavirus relief package that some investors had hoped for, while the White House race remained in the balance.
A large economic package would bolster prospects for Canada's commodity-linked currency, FX strategists said in a Reuters poll.
The Canadian dollar
Canada posted a trade deficit of C$3.3 billion in September as both exports and imports increased, Statistics Canada said. Canada's jobs report for October is due on Friday.
U.S. crude (CLc1) prices were up 2.3% at $38.51 a barrel. Oil is one of Canada's major exports.
Canadian government bond yields were lower across a flatter curve in sympathy with U.S. Treasuries. The 10-year (CA10YT=RR) fell 6.8 basis points to 0.623%, pulling back from Tuesday's two-month intraday high at 0.694%.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.