The Canadian dollar strengthened to a five-week \u200bhigh against its US counterpart on Friday \u200cas oil prices rose and domestic retail sales data supported expectations the Bank of Canada would raise interest rates next week.<\/p>\n
The loonie was \u2060trading \u200b0.1% higher at 1.40 per US dollar, or 71.43 US cents, after touching its strongest intraday level since September 16 at 1.3969.<\/p>\n
It left the currency on track for a \u200bseventh straight day of gains, which would be \u200cthe longest daily winning streak since March 2022.<\/p>\n
For the week, the currency was up 1% \u2014 heading for its biggest weekly advance since April.<\/p>\n
Canadian retail sales rose 1.2% in August from July, led by \u200chigher sales \u200bat motor vehicle \u200cand parts dealers, while a preliminary estimate showed sales increasing \u200bby 0.7% in September.<\/p>\n
\u201cGiven the resilience in these \u2060spending numbers, we still believe the Bank of Canada \u2060is headed for a rate increase next week,\u201d Oskar Stone, an analyst at \u200bDesjardins, said in a note, adding that the data points to third-quarter GDP growth of 2%.<\/p>\n
The Bank of Canada will raise its benchmark interest rate by 25 basis points to 2.50% on October 28 and \u2060follow with one more hike by the end of March to pre-empt any further rise in inflation expectations, according to a majority of economists polled by Reuters.<\/p>\n
Investors see a roughly 80% chance the BoC hikes next week. Bets on a hike \u2060have increased in recent days after hawkish comments \u200bfrom Governor Tiff Macklem and as Alberta voted by a large \u2060majority to remain part of Canada.<\/p>\n
The price of oil, one of Canada\u2019s \u200cmajor exports, rose after Houthi attacks in Saudi Arabia stoked concern over \u200bfurther disruption to energy supplies from the Middle East. US crude oil futures settled 3.8% higher at $103.27 a barrel.<\/p>\n
Canadian bond yields rose across the curve, tracking moves in US \u200bTreasuries. The 10-year was up 5.1 basis points at 3.838%.<\/p>\n","protected":false},"excerpt":{"rendered":"The Canadian dollar strengthened to a five-week \u200bhigh against its US counterpart on Friday \u200cas oil prices rose…\n","protected":false},"author":2,"featured_media":944014,"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-944013","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\/944013","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=944013"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/944013\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/944014"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=944013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=944013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=944013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}