CANADA FX DEBT – Canadian dollar rose to an 11-day high amid coronavirus optimism | Instant News


* Canadian dollar rises 0.9% against the greenback * Loonie hits the strongest since March 27 at 1.3963 * US oil prices rise 1.4% * Canadian bond yields rise across steeper curves TORONTO, April 7 (Reuters) – Dollar Canada rose to an 11-day high against its US counterpart on Tuesday as investors welcomed the potential slowing of the spread of the coronavirus pandemic and hopes rose that the world’s biggest oil producer would cut output. World stock markets enjoyed a sharp rise on the second day as a sign of progress towards the corona virus in Europe and the United States and some more liberal stimulus aid sent investors back. Canada has a current account deficit and is a major producer of commodities, including oil, so loonies tend to be sensitive to global trade and capital flows. US crude oil futures rose 1.4% to $ 26.44 a barrel as expectations of a cut in production exceeded analysts’ concerns that the global recession after the coronavirus crisis could be deeper than expected. At 9:08 am (1308 GMT), the Canadian dollar traded 0.9% higher at 1.3984 with the greenback, or 71.51 US cents. The currency touched the strongest intraday level since March 27 at 1.3963, while the one-month rate for banker receipts, a measure of Canadian financial system pressure, was lower for the eighth consecutive day at 1.01%. However, there are signs that economic problems will come to Canada. Landlords across the country must prepare for a rent strike in May unless the government takes subsidized rents for occupants because the coronavirus outbreak is reducing wages, industry groups and tenants said on Monday. Canadian government bond yields are higher across a steep curve in sympathy with the US Treasury. The 10-year rose 4 basis points to 0.803%, after touching the highest intraday level since March 27 at 0.838%. (Reporting by Fergal Smith Editing by Paul Simao)



image source

to request modification Contact us at Here or [email protected]

Leave a Reply

Your email address will not be published.