Market News

Canadian dollar steadies near 3-month high as oil climbs - REUTERS

OCTOBER 16, 2021

    * Loonie touches its strongest level since July 6 at 1.2337

    * Canadian wholesale trade increases 0.3% in August 
    * Price of U.S. oil rises 0.7%
    * Canadian bond yields move higher across the curve

    By Fergal Smith
    TORONTO, Oct 15 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Friday as oil prices
rose and domestic data showed a smaller-than-expected increase
in wholesale trade, with the currency holding near an earlier
three-month high.
    The loonie        was trading nearly unchanged at 1.2363 to
the greenback, or 80.89 U.S. cents, after touching its strongest
intraday level since July 6 at 1.2337.
    For the week, the currency was on track to advance 0.9%. It
would be its fourth straight week of gains.
    "The pro-risk mood is CAD-supportive alongside high energy
prices," strategists at Scotiabank, including Shaun Osborne,
said in a note.   
    Stocks advanced globally          as strong earnings kicked
off a new results season on Wall Street and fears that inflation
will trigger earlier-than-expected interest rate rises eased for
    The price of oil, one of Canada's major exports, rose to a
seven-year high on forecasts of a supply deficit over the next
few months as rocketing gas and coal prices stoke a switch to
oil products.
    U.S. crude        prices were up 0.7% at $81.85 a barrel,
while the U.S. dollar gained ground against a basket of major
currencies as data showed U.S. retail sales climbing in
    Domestic data showed that wholesale trade rose by 0.3% in
August from July, falling short of the 0.5% increase analysts
had forecast.             
    Global supply chain bottlenecks are not easing as quickly as
expected, meaning inflation in Canada and among IMF members will
probably take a little longer to come down, Bank of Canada
Governor Tiff Macklem said on Thursday.                     
    Canadian government bond yields were higher across the curve
on Friday, tracking the move in U.S. Treasuries. The 10-year
            rose 4.6 basis points to 1.583%.

 (Reporting by Fergal Smith;
Editing by Alison Williams)


This website uses cookies We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners who may combine it with other information that you've provided to them or that they've collected from your use of their services
Real Time Analytics