The Canadian dollar strengthened to a six-week \u200bhigh against its US counterpart \u200con Friday as a jump in oil prices supported bets the Bank of Canada would tighten further, overshadowing disappointing GDP data.<\/p>\n
The loonie \u2060was \u200btrading 0.2% higher at 1.3955 per US dollar, or 71.66 US cents, after touching its strongest intraday level since September 16 at 1.3943. For the month, the currency was on \u200btrack to gain 2%, which would \u200cbe its biggest monthly advance since April.<\/p>\n
Canada\u2019s economy stalled in August for the second straight month, while advance estimates showed GDP declining 0.1% in September and annualized third-quarter growth of 1.3%. The \u200cBoC has projected \u200bthe economy growing \u200cby 2% in the third quarter.<\/p>\n
\u201cMarkets ignored Canadian GDP \u200band with good reason,\u201d Derek Holt, head \u2060of capital markets economics at Scotiabank, said in \u2060a note.<\/p>\n
\u201cWhile the figures disappointed somewhat, the BoC is forward-looking and focused upon \u200brising inflation risk that has many complex drivers \u2014 like oil that is fired up this morning,\u201d Holt said.<\/p>\n
On Wednesday, the Bank of Canada hiked its key interest rate by 25 basis points to 2.50% and \u2060said further increases might be needed to prevent soaring energy costs from driving broader inflation.<\/p>\n
Investors see a roughly 50% chance the central bank tightens at its next policy decision in December and have fully discounted a move by January.<\/p>\n
\u2060US crude oil futures were trading \u200b2.7% higher at $104.80 a barrel as traders braced for \u2060a potential escalation in the US-Iran conflict after the US midterm elections. Oil is \u200cone of Canada\u2019s major exports.<\/p>\n
Canadian bond yields eased across a steeper \u200bcurve as a sharp selloff in technology-related stocks pushed investors into safe-haven assets such as US Treasuries.<\/p>\n
The 10-year was down 2.1 basis points at 3.780%, after earlier \u200btouching its lowest level since September 4 at 3.768%.<\/p>\n","protected":false},"excerpt":{"rendered":"The Canadian dollar strengthened to a six-week \u200bhigh against its US counterpart \u200con Friday as a jump in…\n","protected":false},"author":2,"featured_media":952370,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[901,888,902,879,877,903,49,48,876,895,896,891,878,875,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,44,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":["post-952369","post","type-post","status-publish","format-standard","has-post-thumbnail","category-canada","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","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-news","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\/952369","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=952369"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/952369\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/952370"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=952369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=952369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=952369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}