*
Canadian dollar rises 0.3% against the greenback
*
Canada’s trade deficit narrows in December
*
Price of U.S. oil settles 4.1% higher
*
10-year yield touches its highest since Jan. 11
TORONTO, Feb 7 (Reuters) – The Canadian dollar ralliedagainst its U.S. counterpart on Tuesday, recovering from atwo-week low, as comments by the chief policymakers at the Bankof Canada and the Federal Reserve calmed investor jitters aboutthe interest rate outlook.
The loonie was trading 0.3% higher at 1.3410 per U.S.dollar, or 74.57 U.S. cents, after trading in a range of 1.3381to 1.3468.
On Tuesday, it touched its weakest since Jan. 20 at 1.3475as investors worried that a blockbuster U.S. jobs report onFriday would spur a more hawkish outlook from Fed Chair JeromePowell than at an interest rate decision last week.
The Canadian dollar “tracked broad-based USD weakness,” saidGeorge Davis, chief technical strategist at RBC Capital Markets.
“Powell did not walk back his more dovish commentary fromlast week’s hike, which was a bit of a letdown to some whoexpected some changes after Friday’s strong employment report.”
Wall Street rallied and the U.S. dollar lost groundagainst a basket of major currencies as Powell declined toequate the surprising strength in the job market with anexpectation that interest rates would need to be higher thanpreviously thought.
The price of oil, one of Canada’s major exports, settled up4.1% at $77.14 a barrel on reduced rate hike concerns andrecovering demand in China.
Bank of Canada Governor Tiff Macklem also spoke, saying thatno further interest rate hikes will be needed if, as expected,the economy stalls and inflation comes down.
Canada posted a C$160 million ($119.1 million) trade deficitin December as energy products dragged down exports and slowereconomic growth weighed on consumer goods imports.
The Canadian 10-year yield touched its highestsince Jan. 11 at 3.109% before dipping slightly to 3.100%, up 4basis points on the day.(Reporting by Fergal SmithEditing by Nick Zieminski)
CANADA FX DEBT-C$ rallies as central banker comments cheer investors
*Canadian dollar rises 0.3% against the greenback*Canada's trade deficit narrows in December*Price of U.S. oil settles 4.1% higher*10-year yield touch
*
Canadian dollar rises 0.3% against the greenback
*
Canada’s trade deficit narrows in December
*
Price of U.S. oil settles 4.1% higher
*
10-year yield touches its highest since Jan. 11
TORONTO, Feb 7 (Reuters) – The Canadian dollar ralliedagainst its U.S. counterpart on Tuesday, recovering from atwo-week low, as comments by the chief policymakers at the Bankof Canada and the Federal Reserve calmed investor jitters aboutthe interest rate outlook.
The loonie was trading 0.3% higher at 1.3410 per U.S.dollar, or 74.57 U.S. cents, after trading in a range of 1.3381to 1.3468.
On Tuesday, it touched its weakest since Jan. 20 at 1.3475as investors worried that a blockbuster U.S. jobs report onFriday would spur a more hawkish outlook from Fed Chair JeromePowell than at an interest rate decision last week.
The Canadian dollar “tracked broad-based USD weakness,” saidGeorge Davis, chief technical strategist at RBC Capital Markets.
“Powell did not walk back his more dovish commentary fromlast week’s hike, which was a bit of a letdown to some whoexpected some changes after Friday’s strong employment report.”
Wall Street rallied and the U.S. dollar lost groundagainst a basket of major currencies as Powell declined toequate the surprising strength in the job market with anexpectation that interest rates would need to be higher thanpreviously thought.
The price of oil, one of Canada’s major exports, settled up4.1% at $77.14 a barrel on reduced rate hike concerns andrecovering demand in China.
Bank of Canada Governor Tiff Macklem also spoke, saying thatno further interest rate hikes will be needed if, as expected,the economy stalls and inflation comes down.
Canada posted a C$160 million ($119.1 million) trade deficitin December as energy products dragged down exports and slowereconomic growth weighed on consumer goods imports.
The Canadian 10-year yield touched its highestsince Jan. 11 at 3.109% before dipping slightly to 3.100%, up 4basis points on the day.(Reporting by Fergal SmithEditing by Nick Zieminski)
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