*Canadian dollar strengthens 0.1% against the greenback*Touches its strongest intraday since Feb. 3 at 1.3326*Price of U.S. oil settles 0.5% higher*10
*
Canadian dollar strengthens 0.1% against the greenback
*
Touches its strongest intraday since Feb. 3 at 1.3326
*
Price of U.S. oil settles 0.5% higher
*
10-year yield touches a one-month high at 3.177%
TORONTO, Feb 13 (Reuters) – The Canadian dollarstrengthened to a 10-day high against its U.S. counterpart onMonday as investors bet the Bank of Canada is not yet finishedraising interest rates following recent data showing surprisingstrength in the domestic jobs market.
Canada’s central bank has signaled a pause in its tighteningcampaign to assess how well rate hikes are working to slow theeconomy and lower inflation.
Data on Friday showed that the Canadian economy added150,000 jobs in January, smashing expectations for a gain of15,000.
“It might be unrealistic to believe that one number couldmake them change their minds so much but the market has had adramatic reaction,” said Marc Chandler, chief market strategistat Bannockburn Global Forex LLC.
Money markets see a roughly 85% chance that the BoC willraise its benchmark rate by July after having expected thecentral bank’s next move to be a cut before the release of theemployment data.
“In the context of the market moving closer to the Fed(Federal Reserve) view that it is getting more aggressive onU.S. rates, that pendulum is also swinging with the help ofstrong jobs data in favor of another hike in Canada,” Chandlersaid.
The Canadian dollar traded 0.1% higher at 1.3330 tothe U.S. dollar, or 75.02 U.S. cents, after touching itsstrongest intraday level since Feb. 3 at 1.3326.
The modest gain for the loonie came as the U.S. dollarlost ground against a basket of major currencies and theprice of oil, one of Canada’s major exports, rose. U.S. crudeprices settled 0.5% higher at $80.14 a barrel.
Canadian government bond yields were mixed across the curve.The 10-year eased 2.8 basis points to 3.129% aftertouching its highest intraday since Jan. 9 at 3.177%.(Reporting by Fergal Smith; editing by Barbara Lewis and DeepaBabington)
www.marketscreener.com