Skip to main content

The Canadian dollar strengthened against its U.S. counterpart on Monday, performing better than most other G10 currencies as oil prices climbed to their highest this year and domestic data showed a 15.8 per cent jump in March housing starts.

The price of oil, one of Canada’s major exports, rose to a five-month high on expectations of tightening global supplies. U.S. crude oil futures settled 2.1 per cent higher at $64.40 a barrel.

“For today it is very much an oil story,” said Eric Theoret, a currency strategist at Scotiabank. “When you have got oil prices hitting fresh 2019 highs it is important from a terms of trade perspective.”

Story continues below advertisement

Rising export prices can help boost a country’s terms of trade, making its economy wealthier.

Canadian housing starts climbed in March to a seasonally adjusted annualized rate of 192,527 units after slowing to a revised 166,290 units in February.

At 3:14 p.m. (1914 GMT), the Canadian dollar was trading 0.6 per cent higher at 1.3312 to the greenback, or 75.12 U.S. cents. Among G10 currencies, only the Norwegian krone , which is also linked to the price of oil, performed better.

The loonie, which touched on Friday a one-week low at 1.3403, traded in a range of 1.3305 to 1.3386.

Gains for the loonie came as the U.S. dollar lost ground against a basket of major currencies. Investors squared positions before a European Central Bank meeting this week, boosting the euro.

Data on Friday from the U.S. Commodity Futures Trading Commission and Reuters calculations showed that speculators have raised their bearish bets on the Canadian dollar. As of April 2, net short positions had increased to 44,323 contracts from 39,571 in the prior week.

More than six months after the United States, Mexico and Canada agreed a new deal to govern more than $1-trillion in regional trade, the chances of the countries ratifying the pact this year are receding.

Story continues below advertisement

Canadian government bond prices were lower across a steeper yield curve, with the two-year down 3.5 Canadian cents to yield 1.611 per cent and the 10-year falling 25 Canadian cents to yield 1.729 per cent.

The 10-year yield touched its highest intraday since March 20 at 1.732 per cent.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter