Canadian dollar climbs to five-week high
TORONTO — The Canadian dollar strengthened to a fiveweek high against its U.S. counterpart on Thursday as investors welcomed an eleventh-hour Brexit deal and domestic data showed a stronger-than-expected gain for factory sales in August.
Canadian manufacturing sales increased by 0.8% in August from July on higher motor vehicle sales, as well as fabricated metal products, Statistics Canada said. Analysts had forecast a 0.6% increase.
Separate data from payroll services provider ADP showed that Canada added 28,200 jobs in September, building on a blockbuster increase of 109,900 in an upwardly revised reading for the previous month.
The encouraging data could support expectations for the Bank of Canada to leave its benchmark interest rate unchanged at 1.75% when the central bank announces its next rate decision on Oct. 30.
Global stocks <.WORLD> rose and the U.S. dollar <.DXY> lost ground after Britain struck a preliminary last-minute deal with the European Union helping to ease some geopolitical jitters.
Canada runs a current account deficit and is a major exporter of commodities, including oil, so its economy could benefit from a pick-up in the global flow of capital or trade.
U.S. crude oil futures
At 9:09 a.m. (1309 GMT), the Canadian dollar
The gain for the loonie came ahead of a federal election on Monday. Opinion polls show that Prime Minister Justin Trudeau’s Liberal Party, in power since 2015, is locked in a tie with the opposition Conservatives and will lose its majority in the House of Commons.
Canadian government bond prices were lower across the yield curve in sympathy with U.S. Treasuries. The two-year