Canadian dollar gains as Brexit deal boosts investor sentiment
The Canadian dollar edged higher against its U.S. counterpart on Thursday as Britain clinched a narrow Brexit trade deal with the European Union and domestic data showed a jump in the value of building permits
The loonie was up 0.2% at 1.2827 to the greenback, or 77.96 U.S. cents, in thin holiday trading. It traded in a range of 1.2819 to 1.2853, having recovered from a near three-week low on Monday of 1.2955.
The safe-haven U.S. dollar dipped against a basket of major currencies after the Brexit deal boosted risk appetite and sterling, raising hopes the United Kingdom can avoid a turbulent economic departure from the European Union at the end of the year.
“Canadian dollar strengthens 0.2% against the U.S. greenback”
The price of oil, one of Canada’s major exports, was down 0.2% at $48.03 a barrel, giving back some of Wednesday’s rally.
After a volatile year for oil, the loonie has advanced less than the other G10 currencies. It was up 1.2% since the start of 2020.
The value of Canadian building permits rose by 12.9% in November from October, easily beating analyst estimates of a 3.0% gain, Statistics Canada data showed.
On Wednesday, a flash estimate from Statistics Canada showed the economy grew by 0.4% in November, despite the COVID-19 resurgence and fresh restrictions, though economists warned a drop back was coming.
Canadian government bond yields were mixed across a flatter curve on Thursday, with the 10-year easing by about half a basis point to 0.725%.
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