BLBG:Canadian Dollar Reaches 2-Month High Before Salaes Data
Canada’s dollar strengthened versus its U.S. counterpart as speculation the Federal Reserve and Chinese government will take steps to boost economic growth spurred demand for higher-risk assets.
The currency was headed for a second straight weekly gain on speculation the Bank of Canada will be the first among Group of Seven counterparts to raise interest rates. Stock-index futures rose and crude oil climbed above $91 a barrel. Statistics Canada will report today that wholesale sales rose 0.2 percent in May, according to the median of 16 forecasts compiled by Bloomberg.
“You’re still seeing demand for Aussie and the Canadian dollar,” Stephen Gallo, senior foreign-exchange strategist at Credit Agricole SA in London, said in a telephone interview. “The markets are playing the debasement trade. They’re buying the currencies that have positive real interest rates and selling the heck out of the ones with negative real interest rates. It’s ongoing slippage away from the euro.”
Canada’s currency, nicknamed the loonie, appreciated 0.2 percent to C$1.0078 per U.S. dollar at 7:33 a.m. in Toronto. It touched C$1.0070, the highest since May 16. One Canadian dollar buys 99.23 U.S. cents.
To contact the reporter on this story: Chris Fournier in Halifax at cfournier3@bloomberg.net
To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net
