The Canadian dollar rose to a near five-month high against its U.S. \u200dcounterpart on \u200bTuesday as a recent improvement in risk appetite offset softer-than-expected domestic GDP data.<\/p>\n
The loonie was trading 0.4% higher at 1.3690 per U.S. dollar, or 73.05 U.S. cents, after touching its strongest intraday level since July 28 at 1.3689.<\/p>\n
Canada\u2019s economy shrank \u2060by 0.3% in October, the largest drop in almost three years and a steeper decline than the 0.2% decrease that economists had forecast. A preliminary estimate showed 0.1% growth in November.<\/p>\n
\u201cI don\u2019t think the Canadian data lately has been \u200cmuch to celebrate but you\u2019ve \u200dhad risk sentiment broadly return with a bang since the last \u200dFed (Federal Reserve) meeting,\u201d said Erik Bregar, director, \u200cFX & precious metals risk management at Silver Gold Bull.<\/p>\n
\u201cSince the \u2060Fed meeting you\u2019ve seen (interest) rate spreads contract – that\u2019s helping the Canadian dollar. You\u2019ve \u200bseen the stock market generally have a buoyant feel to it … and I think that\u2019s helping the Canadian dollar because it\u2019s a risk-sensitive currency.\u201d<\/p>\n
The S&P 500 rose for a fourth straight day and U.S. Treasury yields climbed after data showed that \u200bthe U.S. economy grew at its fastest pace in two years in the third quarter.<\/p>\n
The price of oil was trading 0.6% higher at $58.35 a barrel, supported by supply disruption fears after Ukrainian attacks on Russian vessels and piers. Oil is one of Canada\u2019s major exports.<\/p>\n
Ahead of the Bank of Canada\u2019s interest \u2060rate decision on December 10, the governing council agreed it was hard \u2060to predict whether its next move would be a hike or cut, according to minutes of \u200cthe meeting.<\/p>\n
Canadian bond yields moved lower across a flatter curve, with the 10-year down 4.5 basis points at 3.428%.<\/p>\n
The 10-year yield was trading 4.7 basis points further below its U.S. equivalent at a gap of 74.5 basis points. On Friday, the gap touched \u200cits narrowest in more than two years at 68 basis points.<\/p>\n","protected":false},"excerpt":{"rendered":"The Canadian dollar rose to a near five-month high against its U.S. \u200dcounterpart on \u200bTuesday as a recent…\n","protected":false},"author":2,"featured_media":295163,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[901,888,902,879,877,903,45,49,48,876,895,896,891,878,875,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":["post-365393","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-business","tag-ca","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/365393","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=365393"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/365393\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/295163"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=365393"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=365393"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=365393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}