- August 10, 2019
- Posted by: Trading
- Category: News
(Adds strategist quote and details throughout, updates prices)
* Canadian dollar rises 0.2% against the greenback
* Wages for permanent employees rose by 4.5% year-over-year
* U.S. crude oil prices increase by 3.73%
* Bond prices move lower across the yield curve
By Levent Uslu
TORONTO, Aug 9 (Reuters) – The Canadian dollar strengthened against its U.S. counterpart on Friday, recovering from an earlier loss after a decline in July employment numbers, as the increase in wages firmed investors’ belief in a strong Canadian economy.
Wages for permanent employees rose by 4.5% year-over-year, the largest gain seen since January 2009, domestic data showed. think there was a bit of a second read as well on the employment data, first of all the headline number was weak, but the wages component was relatively firm so I think the part of it (firming of the ) was from that,” said Mark Chandler, head of Canadian fixed income and currency strategy at RBC Capital Markets.
At 3:35 p.m. EDT (1935 GMT), the Canadian dollar CAD=D4 was trading 0.2% higher at 1.3198 to the greenback, or 75.77 U.S. cents. The currency, despite having a volatile week, was nearly unchanged from the last Friday.
For the year, the loonie is up 3.2%, making it the second-best performing G10 currency against the U.S. dollar.
Canada’s economy lost a net 24,200 jobs in July, after shedding 2,200 in the previous month but grew by 1.9% from the last year, also showed domestic data. rise of the loonie came as the price of oil, one of Canada’s major exports, increased on Friday, supported by a drop in European inventories and OPEC output cuts despite the International Energy Agency forecasting demand growth at its lowest since the financial crisis of 2008. crude oil futures settled 3.7% higher at $54.50 a barrel.
Canadian government bond prices were lower across the yield curve, with the two-year down 4.5 Canadian cents to yield 1.4% and the 10-year falling 26 Canadian cents to yield 1.3%.
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