BLBG: Canada’s Currency Climbs for Second Day as U.S. Dollar Drops
Canada’s dollar rose for a second day after the U.S. greenback declined against most major currencies as investors balanced their accounts at year-end.
Trading “will boil down to flow-driven business that has to be tied up before the holidays,’’ wrote Jacqui Douglas, currency strategist at TD Securities Inc. in Toronto, in a note to clients. “The charts suggest a slightly heavy tone for the U.S. dollar versus the Canadian dollar.’’
The Canadian dollar appreciated 0.1 percent to C$1.2173 per U.S. dollar at 9:48 a.m. in Toronto, from C$1.2193 yesterday. One Canadian dollar buys 82.15 U.S. cents. Douglas sees “resistance’’ at C$1.2230 to C$1.2250. Resistance is where orders to sell a currency are clustered.
The U.S. dollar weakened against all of the 16 most actively traded currencies tracked by Bloomberg except the Norwegian krone, the Brazilian real and the pound.
The Canadian dollar will weaken to C$1.28 at the end of the first quarter, according to the median estimate of 45 economists surveyed by Bloomberg News.
Canada’s economy contracted 0.1 percent in October, Statistics Canada said today in Ottawa. That’s less than the 0.3 percent median estimate of 19 economists in a separate survey by Bloomberg.
The yield on the two-year government bond dropped 1 basis point, or 0.01 percentage point, to 1.20 percent. The yield reached 1.194 percent on Dec. 18, the lowest since at least 1989, when Bloomberg records begin. The price of the 2.75 percent security due in December 2010 rose 2 cents to C$102.93.