The Canadian dollar edged higher against its U.S. counterpart on Tuesday as investors weighed prospects of U.S. economic stimulus and domestic data showed home prices gaining across-the-board in September.
The Canadian dollar was trading 0.1 per cent higher at 1.3184 to the greenback, or 75.85 U.S. cents, having traded in a range of 1.3167 to 1.3203. The currency has gained 1 per cent since the start of the month along with an uptick on Wall Street.
U.S. stock index futures rose on expectations that Washington lawmakers would be able to settle their differences for an economic stimulus bill to pass before the Nov. 3 presidential election.
Canada sends about 75 per cent of its exports to the United States, including oil. U.S. crude oil futures fell 0.6 per cent to $40.60 a barrel, pressured by the threat to demand from rising Libyan output and a global resurgence in coronavirus cases.
Canada reported a new COVID-19 milestone on Monday with total infections rising above 200,000 since the pandemic began in early March and as the country’s second wave was expected to be worse than the first.
Still, domestic data showed house prices notching the second-strongest gain for the month of September on record, with the Teranet-National Bank Composite House Price Index climbing 1.1 per cent from August.
The U.S. dollar lost ground against a basket of major currencies as the euro climbed to a one-week high.
Canadian government bond yields were mixed across the curve, with the 10-year nearly unchanged at 0.598 per cent.
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