Canadian dollar rebounds from a one-week low as oil rallies
(Adds strategist quotes and details throughout, updates prices)
* Canadian dollar rises 0.1% against the greenback
* Price of U.S. oil settles 2% higher
* Loonie touches a one-week low intraday at 1.3247
* Canada sheds 205,400 nonfarm payroll jobs in August
By Fergal Smith
TORONTO, Sept 17 (Reuters) - The Canadian dollar edged higher against its U.S. counterpart on Thursday as oil prices climbed, with the loonie recovering from an earlier one-week low, which it hit as investors turned more risk averse.
The rally in oil prices helped the loonie rebound, said Ronald Simpson, a global currency analyst at Action Economics.
Reports that OPEC "sees signs of economic recovery in some areas, and signs of easing inventory surpluses" boosted oil, Simpson said. Oil is one of Canada's major exports.
U.S. crude oil futures
Canada lost 205,400 nonfarm payroll jobs in August, the sixth straight month of decline, a report from payroll services provider ADP showed. The report painted a bleaker picture than recent government labor market data.
Canada's retail sales report for July is due on Friday, which could add to evidence of a robust bounce in economic activity that was flagged by the Bank of Canada last week.
Carolyn Wilkins, the senior deputy governor at the central bank who lost her bid for the top job just four months ago, will not seek a second term, the BoC said.
Canadian government bond yields were little changed across
much of the curve, with the 10-year
Strategists say that setting a target for bond yields could help the BoC reduce the amount of debt it buys to keep interest rates low, checking a threat to market liquidity after the central bank's share of bonds more than doubled this year. (Reporting by Fergal Smith; Editing by Andrea Ricci and Jonathan Oatis) ((firstname.lastname@example.org; +1 416 941 8113;)) Keywords: CANADA FOREX/ (UPDATE 1)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Latest Markets Videos
- Fed could cut rates in 2023, 2024 once inflation under control -Bullard
- US STOCKS-Wall St plunges as Snap's bleak forecast sparks selloff
- All Fed officials backed May rate hike, 'most' saw half-point rises in June and July, minutes show
- US STOCKS-Wall Street surges on upbeat retail guidance, easing Fed fears