C$ edges higher as U.S.-China trade commitment boosts sentiment
(Adds analyst comments and details throughout, updates prices)
* Canadian dollar advances 0.2% against the greenback
* Loonie trades in a range of 1.3177 to 1.3239
* Price of U.S. oil settles 1.7% higher
* Canadian bond yields rise across a steeper curve
By Fergal Smith
TORONTO, Aug 25 (Reuters) - The Canadian dollar rose against its broadly weaker U.S. counterpart on Tuesday, as oil prices climbed and signs of calmer trade relations between the United States and China bolstered investor sentiment.
The move higher had little to do with anything originating in Canada, said Bipan Rai, North America head of FX strategy at CIBC Capital Markets.
"What's going on with stocks, with the broad U.S. dollar, I think it is more of a reaction to that," Rai said.
Canada is a major exporter of oil and other commodities, so the loonie tends to be sensitive to the global flow of trade and capital.
Global shares rose after the U.S. and China reaffirmed their commitment to the Phase One trade deal agreed in January, while the U.S. dollar fell against a basket of major currencies as better-than-expected German economic data boosted the euro.
The economic shock from the coronavirus pandemic will test public confidence in the Bank of Canada's 2% inflation target, Lawrence Schembri, a deputy governor at the central bank, said.
Bank of Canada Governor Tiff Macklem is scheduled to participate in a Federal Reserve Bank of Kansas City panel discussion on Thursday.
Canadian government bond yields were higher across a steeper
curve in sympathy with U.S. Treasuries on Tuesday. The 10-year
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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