(Adds strategist quotes and details throughout; updates prices)

* Canadian dollar rises 0.3% against the greenback

* Loonie posts its strongest since Sept. 21 at 1.3257

* Price of U.S. oil settled 5.9% higher

* Canadian bond yields climb across a steeper curve

By Fergal Smith

TORONTO, Oct 5 (Reuters) – The Canadian dollar strengthened
to a two-week high against its U.S. counterpart on Monday as the
price of oil, one of Canada’s major exports, rebounded and the
greenback broadly declined, with investors eying domestic jobs
data later in the week.

The loonie was trading 0.3% higher at 1.3262 to the
greenback, or 75.40 U.S. cents. The currency touched its
strongest intraday level since Sept. 21 at 1.3257.

The currency “has likely got a boost from U.S. dollar
weakness and a rebound in the oil price,” said Colin Cieszynski,
chief market strategist at SIA Wealth Management.

The safe-haven U.S. dollar dipped on optimism that
U.S. lawmakers will agree on new stimulus to blunt the economic
impact of the coronavirus pandemic and after U.S. President
Donald Trump said he would leave the hospital where he is being
treated for COVID-19.

U.S. crude oil futures settled 5.9% higher at $39.22
a barrel, while shares on Wall Street also rallied.

Canada’s trade report for August is due on Tuesday, while
the September employment report is set for Friday.

The jobs report will help show the strength of economic
recovery and whether “the Bank of Canada needs to do anything,
anytime soon or does it stay the course,” Cieszynski said.

The central bank has said it will hold interest rates at
near zero until economic activity returns to full capacity.

Canadian government bond yields were higher across a steeper
curve in sympathy with U.S. Treasuries on Monday. The 10-year
rose 4.7 basis points to 0.615%, which was its
highest level since Sept. 1.

(Reporting by Fergal Smith; Editing by Steve Orlofsky and Peter
Cooney)
(([email protected]; +1 416 941 8113;))

Keywords: CANADA FOREX/ (UPDATE 1)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Source Article