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TORONTO – Canadian dollar strengthened
against his American counterpart on Thursday after a trade deal was signed
reached between Great Britain and the European Union, reinforcing the
global economic outlook, and national data showed a jump in the
value of building permits.
The loonie was up 0.2% to 1.2817 per dollar, or
78.02 US cents Traded in a range
from 1.2813 to 1.2853, having recovered from a low of almost three weeks
on Monday from 1.2955.
“The Brexit news is good for global growth and the
dollar benefits from that, “said Adam Button, currency director.
ForexLive analyst.
Britain closed a close Brexit trade deal with the
European Union only seven days before leaving one of the
the world’s largest trading blocks in their most important countries
change since the loss of the empire.
Canada is a major exporter of commodities, including oil, so
the loonie tends to be sensitive to world perspectives
economy.
US crude futures were up 0.2% to $ 48.22 a year.
barrel, while Wall Street closed with a modest gain despite
doubt whether a stimulus package approved by Congress
Monday would become law.
After a volatile year for oil, the loonie has made less progress
than the other G10 currencies. Up 1.3% from the start of
2020.
The value of Canadian building permits increased 12.9% in
From November to October, beating analysts’ estimate of 3.0%
gain, data from Statistics Canada showed.
On Wednesday, a flash estimate from Statistics Canada showed
the economy grew 0.4% in November, despite COVID-19
resurgence and new restrictions, although economists warned
recoil was approaching.
Canadian government bond yields mixed in a
curve on Thursday, with the 10-year easing in less
from a basis point to 0.720%.
(Report by Fergal Smith; edited by Barbara Lewis and
Richard Chang)
