By Fergal Smith

TORONTO (Reuters) – The Canadian dollar rose to a more-than two-week high against the greenback on Thursday as higher oil prices and the potential for U.S. stimulus offset comments from Bank of Canada Governor Tiff Macklem, leaving negative interest rates on the table.

U.S. stocks climbed as President Donald Trump fueled hopes of fresh fiscal aid, while the price of oil, one of Canada’s major exports settled 3.1% higher at $41.19 a barrel on support from output shutdowns ahead of a storm in the U.S. Gulf of Mexico.

“The market is coming to terms with an era of easy money from central banks and governments and it’s undoubtedly beneficial to a commodity exporter,” such as Canada, said Adam Button, chief currency analyst at ForexLive.

“Hopes for American stimulus and the rise in oil prices has overshadowed Macklem’s cryptic comment on negative rates,” Button added.

The Bank of Canada is not actively discussing negative interest rates but they are a tool the bank could use in case it needs to do more to tackle economic challenges caused by the coronavirus outbreak, Governor Tiff Macklem said. “Never say never,” he said.

The Canadian dollar <CAD=> was trading 0.4% higher at 1.3201 to the greenback, or 75.75 U.S. cents. The currency touched its strongest intraday level since Sept. 21 at 1.3198.

Canadian housing starts fell by more than expected in September, tumbling 20% to 208,980 units from a revised 261,547 units in August, data from the Canadian Mortgage and Housing Corporation showed.

Canada’s jobs report for September is due on Friday.

Canadian government bond yields eased across much of the curve in sympathy with U.S. Treasuries on Thursday. The 10-year <CA10YT=RR> fell 1.2 basis points to 0.612%, pulling back from an earlier five-week high at 0.639%.

(Reporting by Fergal Smith;

(Adds strategist quotes and details throughout, updates prices)

* Canadian dollar rises 0.4% against the greenback

* Loonie touches its strongest since Sept. 21 at 1.3198

* Canadian housing starts fall 20% in September

* Canadian bond yields ease across much of the curve

By Fergal Smith

TORONTO, Oct 8 (Reuters) – The Canadian dollar rose to a
more-than two-week high against the greenback on Thursday as
higher oil prices and the potential for U.S. stimulus offset
comments from Bank of Canada Governor Tiff Macklem, leaving
negative interest rates on the table.

U.S. stocks climbed as President Donald Trump fueled hopes
of fresh fiscal aid, while the price of oil, one of Canada’s
major exports settled 3.1% higher at $41.19 a barrel on support
from output shutdowns ahead of a storm in the U.S. Gulf of
Mexico.

“The market is coming to terms with an era of easy money
from central banks and governments and it’s undoubtedly
beneficial to a commodity exporter,” such as Canada, said Adam
Button, chief currency analyst at ForexLive.

“Hopes for American stimulus and the rise in oil prices has
overshadowed Macklem’s cryptic comment on negative rates,”
Button added.

The Bank of Canada is not actively discussing negative
interest rates but they are a tool the bank could use in case it
needs to do more to tackle economic challenges caused by the
coronavirus outbreak, Governor Tiff Macklem said. “Never say
never,” he said.

The Canadian dollar was trading 0.4% higher at 1.3201
to the greenback, or 75.75 U.S. cents. The currency touched its
strongest intraday level since Sept. 21 at 1.3198.

Canadian housing starts fell by more than expected in
September, tumbling 20% to 208,980 units from a revised 261,547
units in August, data from the Canadian Mortgage and Housing
Corporation showed.

Canada’s jobs report

* Canadian dollar rises 0.1% against the greenback

* Loonie touches its strongest since Sept. 21 at 1.3229

* Canadian housing starts fall about 20% in September

* Canadian bond yields dip across the curve

TORONTO, Oct 8 (Reuters) – The Canadian dollar strengthened
to a more-than two-week high against the greenback on Thursday
as oil prices rose, while Bank of Canada Governor Tiff Macklem
left negative interest rates on the table if the coronavirus
crisis were to worsen.

The BoC is not actively discussing negative interest rates
but they are a tool the bank could use in case it needs to do
more to tackle economic challenges caused by the coronavirus
outbreak, Governor Tiff Macklem said. “Never say never,” he
said.

The price of oil, one of Canada’s major exports, was
supported by output shutdowns in the U.S. Gulf of Mexico and the
prospect of more supply losses in Norway, as well as by hopes
for some U.S. coronavirus relief aid. U.S. crude prices
were up 2.8% at $41.06 a barrel.

The Canadian dollar was trading 0.1% higher at 1.3243
to the greenback, or 75.51 U.S. cents. The currency touched its
strongest intraday level since Sept. 21 at 1.3229.

Canadian housing starts fell by more than expected in
September, tumbling about 20% to 208,980 units from a revised
261,547 units in August, data from the Canadian Mortgage and
Housing Corporation showed.

Canadian government bond yields edged lower across the curve
in sympathy with U.S. Treasuries. The 10-year fell
one basis point to 0.614%, pulling back from an earlier
five-week high at 0.639%.

Canada’s jobs report for September is due on Friday, which
can help guide expectations for the strength of economic
recovery.

(Reporting by Fergal Smith; Editing by Steve Orlofsky)
(([email protected]; +1 647 480 7446;))

Keywords: CANADA FOREX/

The

Oil prices climbed higher at the start of the week due to an oil strike in Norway, stimulus talks in the U.S. congress and a hurricane in the Gulf of Mexico

Chart of the Week

–    U.S. natural gas production, consumption, and gross exports all set new records in 2019.

–    Production rose by 10 percent to 93.1 bcf/d, consumption was up 3 percent, and exports were up by 29 percent to 12.8 bcf/d.

–    Texas saw its gas production rise by 15 percent, rising to 22.2 bcf/d. Pennsylvania’s output rose by 10 percent to 18.6 bcf/d.

–    However, towards the end of 2019, gas production began to contract due to a shrinking rig count and low prices. 

Market Movers

–    Equinor (NYSE: EQNR) shut down four offshore oil fields in the North Sea due to a worker’s strike. The fields produce more than 330,000 barrels of oil equivalent per day combined.

–    Sempra Energy’s (NYSE: SRE) Cameron LNG shipped its first LNG cargo since late August when Louisiana was hit by Hurricane Laura.  

–    Premier Oil (OTCPK: PMOIF) and Chrysaor Holdings agreed to a merger that will create the largest oil and gas producer in the North Sea. 

Tuesday, September 29, 2020

Oil prices shot up on Monday and Tuesday, pushed higher by an oil strike in Norway, potential stimulus talks in the U.S. Congress, and a strengthening hurricane in the Gulf of Mexico. 

Hurricane Delta rapidly intensifies to Cat 4. Hurricane Delta rapidly intensified into a Category 4 storm on Tuesday, and it is moving into the Gulf of Mexico and could become a hurricane later this week. It is on track to make landfall in Louisiana by late Friday. 

Saudi budget plans for $50 oil in 2023. Riyadh is forming a budget that assumes oil remains at

NEW YORK (AP) — U.S. stocks rallied on Wednesday, but only after zooming up, down and back up again in a fitting end to what was a wild month and quarter for Wall Street.

Prospects for additional support from Congress for the economy helped drive the day’s trading, as they have for weeks. The S&P 500 shot to a gain of as much as 1.7% after Treasury Secretary Steven Mnuchin told CNBC that he would talk with House Speaker Nancy Pelosi about a potential deal in the afternoon, “and I hope we can get something done.”

But the gains nearly vanished as pessimism rose about Washington’s ability to get past its partisanship and send economic aid that investors say is crucial. The S&P 500 hit its low for the day just after Pelosi said she and Mnuchin “found areas where we are seeking further clarification,” though she said talks will continue.

By the end of trading, momentum had returned, and the S&P 500 rose 27.53 points, or 0.8%, to 3,363.00. The Dow Jones Industrial Average gained 329.04, or 1.2%, to 27,781.70, and the Nasdaq composite added 82.26, or 0.7%, to 11,167.51.


It was the last day of a strong quarter for the market, where the S&P 500 rallied 8.5% to follow up on its 20% surge in the spring. Continued support from the Federal Reserve helped drive the gains, as the central bank leaned further into the whatever-it-takes approach taken to support markets and the economy. After already cutting interest rates to nearly zero, the Fed said during the quarter that it may keep interest rates low even after inflation runs above its target level.

But momentum slowed sharply at the end of the quarter, and the S&P 500 lost 3.9% in September for its first monthly loss since the