Canadian dollar strengthens to five-month high as oil climbs
Reuters
Published Aug 05, 2020 09:30
TORONTO (Reuters) - The Canadian dollar climbed to its highest in more than five months against its broadly weaker U.S. counterpart on Wednesday as oil prices rose, but some gains for the loonie were given back after domestic data showing a wider trade deficit.
The loonie
Canada's trade deficit unexpectedly ballooned to C$3.19 billion in June on a surge in motor vehicle and parts imports as the economy started to reopen, Statistics Canada data indicated. Analysts had forecast a deficit of C$0.90 billion.
The price of one of Canada's major exports, oil, rose to its highest since early March on data showing a big drop in U.S. crude inventories.
U.S. crude oil futures (CLc1) were up 3.4% at $43.12 a barrel, while the U.S. dollar (DXY) extended its recent decline as euro zone data reassured and a U.S. coronavirus relief package remained stalled in Congress.
Canadian government bond yields were higher across a steeper curve, with the 10-year (CA10YT=RR) up 4.5 basis points at 0.480%. Last Friday, it hit its lowest intraday level in nearly five months at 0.412%.
Canada's employment report for July is due on Friday.
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.