CANADA FX DEBT-Canadian dollar posts biggest gain in 8 weeks as stocks rally

  • 11/2/2020
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(Adds strategist quotes and details throughout; updates prices) * Canadian dollar rises 0.7% against the greenback * Price of U.S. oil settles 2.9% higher * Canadian factory activity expands in October * Canadian bond yields trade mixed across a flatter curve By Fergal Smith TORONTO, Nov 2 (Reuters) - The Canadian dollar strengthened against all the other G10 currencies on Monday as investor sentiment perked up ahead of the U.S. presidential election and oil prices rebounded. The Canadian dollar was trading 0.7% higher at 1.3230 to the greenback, or 75.59 U.S. cents, which was the best performance among G10 currencies. It was the loonie"s largest advance since Sept. 9, clawing back some of last week"s 1.5% decline. Wall Street"s major indexes gained ground after suffering their worst week since March, as investors geared up for an event-packed week centered around Tuesday"s election. The loonie got a boost from the "slight upturn in risk appetite" as well as higher commodity prices, said Hendrix Vachon, a senior economist at Desjardins. Canada is a major producer of commodities, including oil. U.S. crude oil futures settled 2.9% higher at $36.81 a barrel after data showed China"s factory activity rose to its highest in nearly a decade and U.S. manufacturing activity accelerated more than expected. In Canada, data showed that manufacturing activity expanded for the fourth straight month in October as the sector continued to recover from the coronavirus crisis. Canada"s trade report for September is due on Wednesday, while the October jobs report is due on Friday. Canadian government bond yields were mixed across a flatter curve on Monday, with the 10-year down 3.7 basis points at 0.630%.

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