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Canadian Dollar Gains 0.4% Against Dollar
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Touching the strongest level since February 16th at 1.3379
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US oil prices fall 0.6%
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Canada-US 2-year spread narrows since September
TORONTO (Reuters) – The Canadian dollar traded about two months against the U.S. currency on Thursday after investors focused on U.S. economic data and the Bank of Canada ruled out a rate cut a day earlier. It was the highest price ever. this year.
The US dollar widened its recent losses against a basket of major currencies and US Treasury yields fell as data showed a slowdown in producer price gains last month and an increase in unemployment claims.
Data suggest rising borrowing costs are hurting the U.S. economy, and the Federal Reserve may pause its rate hike campaign after an expected rate hike next month.
The Bank of Canada has already moved to the sidelines. On Wednesday, it left the main overnight rate unchanged at 4.50% for the second straight meeting, but downplayed market expectations of a rate cut this year as recession risks diminished, taking a hawkish tone. I hit
The Canadian dollar is trading 0.4% higher at $1.3379, or 74.74 cents, its strongest level since February 16th.
Oil prices, one of Canada’s major exports, have rebounded some of their recent gains as markets weighed on the prospect of supply shortages against a possible recession in the United States, the world’s largest oil consumer. .
US oil prices fell 0.6% to $82.74 a barrel, while Canadian bond yields were mixed with a steep curve.
Two-year bonds fell 2.3 basis points to 3.759%, narrowing the gap with US Treasuries by 2.7 basis points to around 16 basis points, the lowest since September. (Reporting by Fergal Smith; Editing by Paul Simao)
