In financial developments on Thursday, the Canadian dollar advanced by 0.2% against the U.S. dollar, trading at 1.3732, or 72.82 U.S. cents. This marks a continued recovery from the near two-year low of 1.3946 it hit earlier in the week, amid global market turbulence.
Financial markets showed signs of stabilization, contributing to the Canadian currency’s strength. “The reset button has been hit, and CAD has appreciated accordingly,” noted Amo Sahota, director at Klarity FX.
U.S. oil prices also saw an uptick, settling 1.3% higher at $76.19 per barrel. The stability of oil prices, a crucial Canadian export, has bolstered the Canadian dollar.
Wall Street’s main indexes climbed as economic data eased concerns about a deteriorating labor market. Investors are now keenly watching Canada’s upcoming employment report for July, expected to reveal an addition of 22,500 jobs and a slight rise in the unemployment rate to 6.5% from 6.4%.
Market participants are also eyeing the Bank of Canada’s policy meeting on September 4, with expectations of a further interest rate cut. Previously, the BoC reduced its benchmark rate to 4.50%.
Canadian government bond yields rose in tandem with U.S. Treasuries. The 10-year bond yield increased by 3.1 basis points, reaching 3.181% and continuing its rebound from a 15-month low of 2.947% earlier in the week.
As financial markets regain footing, the trajectory of Canadian currency and economic indicators remains under close scrutiny.
Original Story https://www.livemint.com/news/canadian-dollar-extends-recovery-ahead-of-jobs-report-11723146125638.html
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