🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

CANADA FX DEBT-C$ strengthens as crude oil prices rally, retail sales jump

Published 2016-01-22, 09:54 a/m
CANADA FX DEBT-C$ strengthens as crude oil prices rally, retail sales jump
USD/CAD
-
CL
-
NYF
-
CA2YT=RR
-
CA10YT=RR
-

* Canadian dollar at C$1.4166 or 70.59 U.S. cents
* Bond prices lower across the maturity curve

By Fergal Smith
TORONTO, Jan 22 (Reuters) - The Canadian dollar rallied
against its U.S. counterpart Friday, extending gains following
the Bank of Canada's steady rate decision mid-week, as crude oil
prices rose and retail sales data suggested the economy was
stronger than expected.
Oil rose as a cold snap boosted demand for heating oil
across the United States and Europe.
A greater global appetite for risk was also supportive of
the currency, according to Derek Holt, vice president of
economics at Scotiabank.
Rising expectations of monetary easing by central banks in
Europe and Japan have prompted a strong recovery in global oil
and stock markets.
The market has reduced expectations for Bank of Canada rate
cuts after the central bank decided on Wednesday to leave its
policy rate at 0.50 percent, putting the onus on federal
authorities to raise spending. BOCWATCH
"The Bank of Canada has signaled they have a higher
threshold for acting soon and they have punted the ball to the
federal government," said Holt.
At 9:37 a.m. EST (1437 GMT), the Canadian dollar CAD=D4
was trading at C$1.4166 to the greenback, or 70.59 U.S. cents,
stronger than the Bank of Canada's official close of C$1.4279,
or 70.03 U.S. cents.
The currency touched its strongest level since Jan. 11 at
C$1.4139, while its weakest level of the session was C$1.4300.

Canadian retail sales jumped 1.7 percent in November, far
more than expected, due to higher sales at new car dealers and
Black Friday purchases, data from Statistics Canada showed.
On the other hand, Canada's annual inflation rate edged up
less than expected to 1.6 percent from 1.4 percent in November,
Statistics Canada said. The core inflation rate continued to
edge downward, falling to 1.9 percent from 2.0 percent the
previous month.
Canadian government bond prices were lower across the
maturity curve, with the two-year CA2YT=RR price down 2.5
Canadian cents to yield 0.469 percent and the benchmark 10-year
CA10YT=RR falling 52 Canadian cents to yield 1.325 percent.
The Canada-U.S. two-year bond spread was 2.5 basis points
more negative at -40.0 basis points as Treasuries underperformed
at the front of the curve.

(Editing by Bernadette Baum)

Latest comments

Risk Disclosure: 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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.