Canadian dollar notches 4-week high as risk appetite recovers
C$ touches its strongest since March 3 at 1.3560
Canadian bond yields trade mixed across curve
Adds strategist quotes and details throughout; updates prices
By Fergal Smith
TORONTO, March 29 (Reuters) -The Canadian dollar strengthened to its highest level in nearly four weeks against its U.S. counterpart on Wednesday as a recovery in risk appetite raised pressure on speculators that have raised bearish bets on currency.
The loonie CAD= was trading 0.2% higher at 1.3570 to the greenback, or 73.69 U.S. cents, after touching its strongest since March 3 at 1.3560.
"A number of points seem to be coming together to support the Canadian dollar and potentially open the door to a bit more strength," said Shaun Osborne, chief currency strategist at Scotiabank, noting the recovery in risk appetite, a pickup in Canadian oil prices and extreme bearish positioning in the currency.
Data from the U.S. Commodity Futures Trading Commission shows that speculators have raised their bearish bets on the loonie to the most since January 2019. 1090741NNET
"The fact that CAD is actually strengthening now, we probably will see a bit more short covering, particularly if we can close quite strongly on the day-to-day and potentially on the week as well," Osborne said.
Equity markets globally rose as worries receded that financial stress could lead to a credit crunch that would be too much for the global economy to handle.
The Bank of Canada is ready to step in with support if the banking system comes under severe strain, but now it is not even close to being worried about the health of the financial system, Deputy Governor Toni Gravelle said.
Meanwhile, Canadian Finance Minister Chrystia Freeland's promise of a fiscally prudent budget in the face of high inflation has disappointed some strategists who had hoped for spending restraint from the Liberal government.
Canadian government bond yields were mixed across the curve. The two-year rose 1.5 basis points to 3.754%, while the 10-year was down nearly 1 basis point at 3.935%.
Reporting by Fergal Smith; Editing by Sharon Singleton
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。