Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Canadian dollar posts 3-month high amid signs of solid economic rebound

10/14/2021 | 10:12am EST
FILE PHOTO: A Canadian dollar coin, commonly known as the

TORONTO (Reuters) - The Canadian dollar on Thursday strengthened to its highest level in more than three months against its U.S. counterpart, as oil prices rose and domestic manufacturing data added to evidence that economic activity picked up in the third quarter.

Canadian factory sales rose 0.5% in August from July, on higher sales of petroleum and coal, chemicals and primary metals, Statistics Canada said.

"The broad-based increase in Canada's manufacturing sales in August is welcome news," Omar Abdelrahman, an economist at TD Economics, said in a note. "Canada's economy appears to be on track to record a solid rebound in the third quarter."

Canada's economy surprisingly shrank in the second quarter. But data last Friday showed that Canada has added back all the jobs it lost during the pandemic.

The jobs data has bolstered expectations for the Bank of Canada to further cut its bond purchase program later this month. The central bank is due on Oct. 27 to make an interest rate announcement and update its economic forecasts.

The price of oil, one of Canada's major exports, rose after the International Energy Agency said that record natural gas prices would boost demand for oil and top oil producer Saudi Arabia dismissed calls for additional OPEC+ supply.

U.S. crude prices increased 0.5% to $80.85 a barrel, while the Canadian dollar was trading 0.6% higher at 1.2362 to the greenback, or 80.89 U.S. cents, its strongest level since July 6.

Gains for the loonie came as the U.S. dollar gave back some recent gains against a basket of major currencies.

Canadian government bond yields were lower across much of a flatter curve. The 10-year dipped 2.2 basis points to 1.580%, after touching on Tuesday its highest since January 2020 at 1.683%.

(Reporting by Fergal Smith; Editing by Kirsten Donovan)

By Fergal Smith


ę Reuters 2021
Latest news "Economy & Forex"
01:22aANALYSIS-READY TO POUNCE : Investors prepare for swings, opportunities as Omicron variant spreads
RE
01:21aAussie and kiwi slide, yen up on Moderna CEO's Omicron warning
RE
01:21aGlobal jet fuel demand under pressure from Omicron, border curbs
RE
01:20aS&p 500 e-mini futures down 1.04%
RE
01:16aBitcoin last down 3% at $56,115.40; ether last down 2% at $4,363.23
RE
01:15aVolvo Cars sees supply situation improving after Q3 profit drop
RE
01:14aMsci emerging markets index falls about 0.8% to one-year low
RE
01:11aPowell, Yellen head to Congress as inflation, variant risks rise
RE
01:10aChina seeks better cross-border control of big data with new plan
RE
01:10aMsci asia ex-japan equity index falls 1% to one-year low of 618.01
RE
Latest news "Economy & Forex"