Loonie rises, shrugs off disappointing data
The Canadian dollar rose against most of its peers on Friday, shrugging off disappointing data and pressures on oil prices, which is one of the main pillars of the Canadian government budget.
Data showed today that Canada's manufacturing sales index fell 2% in September, worse than forecasts for a drop by 1.4%, after the index rose 7.2% in August.
The market remain concerned about the coronavirus global impact, especially as the second wave of infections sparked in several major countries
As of 17:53 GMT, WTI crude November futures at NYMEX fell by 0.2% to $40.8 a barrel, after hitting a high of $41.05 and a low of $40.08.
Brent December futures fell 0.4% to $42.9 a barrel, with a high of $43.2 and a low of $42.2.
The Institute for Supply Management (ISM) showed today that the US manufacturing sector in continued to grow for the fifth straight month during September, albeit at a lower pace compared to August. The US manufacturing PMI fell to 54.6 points in September from the 21-month high of 56 points of August.
The Canadian dollar rose against most major currencies on Thursday, ahead of the release of Canada's jobs data tomorrow. Lonnie has been lifted by the recovery in oil prices, as oil is a major commodity for Canada's exports and budget revenues. As of 18:09 GMT, WTI October futures at Nymex rose 3.2% to $41.2 a barrel, after hitting a high of $41.2 and a low of $39.7. Brent November futures rose 3.3% to $43.3 a barrel, with a high of $43.4 and a low of $41.8. Canada will release its monthly jobs report Friday, with forecasts that the economy has created 150,000 new jobs in September and for the unemployment rate to fall to 9.8%. As of 18:25 GMT CAD/USD rose 0.4% to 0.7573, after hitting a high of 0.7576 and a low of 0.7533.
The US dollar fell against its rivals on Wednesday, to hit the lowest level since early September, as the market focus on the ongoing discussions about the second Covid-19 aid package in the US. US Treasury Secretary Steven Mnuchin met yesterday with some congressional leaders to narrow their differences and discuss the possibility of securing a deal on the $1.8 trillion stimulus package. Meanwhile, investors are also focusing on the corporate earnings season, with major firms releasing their business results, led by Netflix, Snapchat and a slew of US banks. The number of Covid-19 infections surpassed 40 million confirmed cases worldwide. While one of the volunteers has died during the clinical trials for the vaccine developed by AstraZeneca and Oxford University. The dollar index fell against a basket of currencies by 0.5% to 92.6 points as of 20:17 GMT, after hitting a high of 93.07 and a low of 92.4.