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The Canadian dollar strengthened to its highest level in nearly six weeks against its U.S. counterpart on Monday as the price of oil, one of Canada’s major exports, rose and recent data bolstered investor confidence in the domestic economy.

At 3:57 p.m., the Canadian dollar was trading 0.1 per cent higher at 1.3160 to the greenback, or 75.99 U.S. cents. The currency, which last week snapped a seven-week losing streak, touched its strongest intraday level since July 31 at 1.3140.

Data on Friday showed that Canada’s economy added 81,100 jobs in August. It followed data the previous week showing that gross domestic product expanded at an annualized rate of 3.7 per cent in the second quarter, even as other countries were being hurt by global trade uncertainty.

Recent data has indicated to investors that the Canadian economy “was weathering the geopolitical storm quite well,” said Brad Schruder, director of corporate sales and structuring at BMO Capital Markets.

The Bank of Canada reinforced last week the rosy view on the Canadian economy when it left interest rates on hold, Schruder added.

Chances of a rate cut at the Bank of Canada’s next interest rate decision on Oct. 30 have fallen to less than 20 per cent from about 70 per cent before last Wednesday’s interest rate decision.

“I would suspect you see the Canadian dollar potentially appreciate another penny to a penny-and-a-half before it finds a short-term floor and starts to go the other way,” Schruder said.

Since the beginning of 2019, the loonie has gained 3.7 per cent, making it the top-performing G10 currency.

Oil prices climbed on Monday after the new Saudi energy minister, Prince Abdulaziz bin Salman, confirmed expectations he would stick with his country’s policy of limiting crude output to support prices. U.S. crude oil futures settled 2.4 per cent higher at $57.85 a barrel.

Canadian government bond prices were lower across the yield curve in sympathy with U.S. Treasuries as risk appetite improved amid easing U.S.-China trade tensions and expectations of less-aggressive action from the European Central Bank this week.

The two-year fell 11.5 cents to yield 1.551 per cent and the 10-year was down 60 cents to yield 1.345 per cent. The 10-year yield touched its highest intraday level since Aug. 6 at 1.352 per cent.

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