Canadian dollar gains 0.1% against the greenback
For the week, the loonie down 0.1%
Price of U.S. oil increases 1%
Bond yields rise across the curve
TORONTO, Oct 3 (Reuters) – The Canadian dollar edged higher against its U.S. counterpart on Friday as oil prices rose, but the currency was still headed for a weekly decline.
The loonie was trading 0.1% higher at 1.3955 per U.S. dollar, or 71.66 U.S. cents, after trading in a range of 1.3940 to 1.3969.
On Thursday, the currency touched its weakest intraday level since May 16 at 1.3986. For the week, it was down 0.1%, which would be its second straight weekly decline. “The CAD has had another poor week,” Shaun Osborne and Eric Theoret, strategists at Scotiabank, said in a note. “Weaker crude and a mild downturn in Canadian terms of trade are the obvious drags on the CAD’s performance.” The price of oil, one of Canada’s major exports, was trading 1% higher at $61.06 a barrel, but was also set for a weekly decline. Eight OPEC countries are likely to further raise oil output on Sunday.
Canada’s services economy contracted at a steeper pace in September as businesses shed jobs and outstanding work sank to a five-year low, S&P Global’s Canada services PMI data showed.
Canadian Prime Minister Mark Carney plans to meet with U.S President Donald Trump on Tuesday in Washington to discuss economic and security issues, Carney’s office said, as the two nations review a North American trade pact. The Canadian dollar is set to strengthen over the coming year as expected Federal Reserve interest rate cuts weigh on the greenback, but uncertain prospects for the United States-Mexico-Canada trade agreement could put that forecast at risk, a Reuters poll found. Canadian government bond yields moved higher across the curve, with the market tracking moves in U.S. Treasuries after the U.S. government shutdown led to the postponement of a key jobs report. The 10-year was up 1.5 basis points at 3.191%. (Reporting by Fergal Smith; Editing by Leslie Adler)
