Home Forex Exchange CANADA FX DEBT-Canadian dollar climbs 2.7% in November amid vaccine optimism – Reuters

CANADA FX DEBT-Canadian dollar climbs 2.7% in November amid vaccine optimism – Reuters

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 (Adds strategist quotes and details throughout; updates prices)
    * Canadian dollar rises 0.2% against the greenback
    * Loonie touches its strongest since October 2018 at 1.2923
    * U.S. crude oil futures        settle 0.4% lower
    * Canadian bond yields trade mixed across a flatter curve

    By Fergal Smith
    TORONTO, Nov 30 (Reuters) - The Canadian dollar strengthened
to a three-week high against its U.S. counterpart on Monday
before paring some gains, with the currency benefiting from
optimism this month that a COVID-19 vaccine will help lead to a
stronger global economic recovery.
    The loonie        was trading 0.2% higher at 1.2970 to the
greenback, or 77.10 U.S. cents, having touched its strongest
intraday level since October 2018 at 1.2923. For the month, the
Canadian dollar was up 2.7%.
    Joe Biden's U.S. presidential election win, hopes for
further stimulus and a series of positive COVID-19 vaccine
announcements have bolstered global market sentiment in
November, prompting commodity-linked currencies, such as the
Canadian dollar, to strengthen and the safe-haven U.S. dollar
       to fall.             
    "It is not really a Canada-related story," said Alvise
Marino, a foreign exchange strategist at Credit Suisse in New
York. "It is primarily about the ongoing bid for risky assets,
which realizes in FX in the form of USD weakness."
    The greenback        rose on Monday but only after it hit
its lowest level in 2-1/2 years earlier in the session.
            
    U.S. crude oil futures        settled 0.4% lower at $45.34 a
barrel, weighed by uncertainty about whether OPEC+ would agree
to extend large output cuts. But crude was up sharply for the
month on hopes that COVID-19 vaccines would soon be available.
                    
    Canada's main share index           has climbed 10.8% since
the start of November. That would be its biggest monthly advance
since May 2009.
    Later on Monday, Canada's federal government is due to
unveil spending plans and detail the cost of its emergency
support measures as a harsh second wave of COVID-19 infections
forces renewed health restrictions across the country.
                
    Canadian government bond yields were mixed across a flatter
curve, with the 10-year yield             easing about 1 basis
point to 0.680%.

 (Reporting by Fergal Smith; Editing by Bernadette Baum and
Peter Cooney)
  

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