CANADA’S FX DEBT – Canadian dollar hits 4-week low as electoral nervousness mounts


(Added strategist comments, market details, price update) * The Canadian dollar weakens 0.5% against the greenback * Hit its lowest level since August 23 at 1.2762 * The price of US oil is 0.9% lower; copper drops 0.7% * Canadian 10-year yield hits 2-month high of 1.300% By Fergal Smith TORONTO, Sept. 17 (Reuters) – The Canadian dollar weakened against its US counterpart on Friday then that commodity prices fell and investors adjusted their positions ahead of a Canadian federal election, with the currency losing ground for a second week. The Canadian dollar was trading down 0.5% to 1.2746 for the greenback, or 78.46 cents US, after hitting its lowest level since August 23 at 1.2762. For the week, the currency was down 0.4%, adding to its decline from the previous week. “Maybe it’s just a bit of preparation for Monday’s election result,” said Amo Sahota, director of Klarity FX in San Francisco. “It’s a slightly tighter race than I think Trudeau certainly would have wanted.” Foreign investors are increasingly concerned that Monday’s election in Canada could lead to a deadlock that is hampering Ottawa’s response to the COVID-19 pandemic and further slowing economic recovery from the crisis. Polls show Prime Minister Justin Trudeau’s center-left Liberals are practically tied with opposition Tories. Falling equity and commodity markets added to the pressure on the loonie, Sahota said. “It’s a bit of a reality check coming into the market, gearing up for the FOMC, gearing up for Monday’s election, reacting to metal prices.” Global stocks fell, under pressure from concerns about Chinese markets, the potential for a U.S. corporate tax hike and an update on the debt reduction strategy for the U.S. US Federal Reserve next week. Oil, one of Canada’s top exports, was down 0.9% to $ 71.97 a barrel, while copper was down 0.7%. Yields on Canadian government bonds were higher on a steeper curve, following the movement of US Treasuries. The 10-year hit its highest level since July 15 at 1.300% before retreating slightly to 1.293%, up 5.7 basis points on the day. (Reporting by Fergal Smith in Toronto Editing by Jane Merriman and Matthew Lewis)

Source link

Previous Rumor has it that Bjergsen will make a comeback in 2022
Next Some of the Best Home Loans for Investors and Refinancers in September 2021

No Comment

Leave a reply

Your email address will not be published. Required fields are marked *