* Canadian dollar strengthens 0.3% against the greenback * Price of U.S. oil settles 1.1% hi
*
Canadian dollar strengthens 0.3% against the greenback
*
Price of U.S. oil settles 1.1% higher
*
Canadian wholesale trade rises 0.5% in November
*
Ten-year bond yield climbs after hitting 5-month low
TORONTO, Jan 19 (Reuters) – The Canadian dollar
strengthened against its U.S. counterpart on Thursday,
recovering from a nearly two-week low, as investors cheered
comments by Federal Reserve officials that could point to a
slower pace of interest rate hikes.
The loonie was trading 0.3% higher at 1.3450 to the
greenback, or 74.35 U.S. cents, after touching its weakest
intraday level since Jan. 6 at 1.3520.
“I think a large part of this recovery today is the less
hawkish turn in Fedspeak,” said Erik Bregar, director, FX &
precious metals risk management at Silver Gold Bull. “CAD is
trading off of broader risk sentiment.”
Boston Fed President Susan Collins said it was now
appropriate to slow the pace of rate hikes, while Fed Vice Chair
Lael Brainard noted signs of slowing economic growth.
Wall Street stocks were down but clawed back some of their
earlier decline, while the U.S. dollar lost ground
against a basket of major currencies and the price of oil
, one of Canada’s major exports, settled 1.1% higher at
$80.33 a barrel.
Domestic data was less bullish for the loonie. It showed
wholesale trade increasing by 0.5% in November from October,
which was less than expected, and home prices extending their
decline in December from a peak in May.
Home prices have declined as the Bank of Canada raised
interest rates to 4.25% to tackle inflation.
Money markets see a roughly 60% chance that the central bank
will further raise the policy rate by a quarter of a percentage
point next Wednesday, and expect that rate to peak at 4.50%.
Canadian government bond yields were higher across the
curve, tracking the move in U.S. Treasuries.
The 10-year was up 2.4 basis points at 2.747%,
after earlier touching its lowest level since Aug. 16 at 2.701%.
(Reporting by Fergal Smith; Editing by Paul Simao and Diane
Craft)
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