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CANADA FX DEBT-C$ climbs to a 2-week high, boosted by U.S. Election Day bets

 (Adds strategist quotes and details throughout; updates prices)
    * Canadian dollar rises 0.4% against the greenback
    * Loonie touches its strongest since Oct. 21 at 1.3099
    * Price of U.S. oil settles 2.3% higher
    * Canadian bond yields rise across a steeper curve

    By Fergal Smith
    TORONTO, Nov 3 (Reuters) - The Canadian dollar rose against
a broadly weaker greenback on Tuesday amid investor optimism
that the outcome of the U.S. election would clear the way for
economic stimulus, with the currency building on strong gains
from the day before.    
    Wall Street's main indexes jumped as investors bet that
Democrat challenger Joe Biden will win Tuesday's U.S.
presidential election and launch a large new stimulus package.
            
    The prospect of a clear win for Biden "has hit markets
early, crushing the (U.S.) dollar, while lifting emerging market
and commodity-linked currencies like the Canadian dollar." said
Karl Schamotta, chief market strategist at Cambridge Global
Payments.
    "But considerable uncertainty remains, and the loonie could
hit severe turbulence as the swing states are announced this
evening," Schamotta said.
    Biden is ahead in national opinion polls, but races are
tight in battleground states that could tip the election to
incumbent President Donald Trump.                 
    A large economic package would bolster prospects for the
Canadian dollar, FX strategists said in a Reuters poll.
Strategists expect the loonie to extend its rally over the
coming year if the COVID-19 crisis becomes less of a drag on the
global economy.             
    The price of oil, one of Canada's major exports, rose but
concerns over surging coronavirus cases around the world capped
further gains.             
    U.S. crude oil futures        settled 2.3% higher at $37.66
a barrel, while the Canadian dollar        rose 0.4% to 1.3165
per U.S. dollar, or 75.96 U.S. cents.
    The currency touched its strongest intraday level since Oct.
21 at 1.3099. On Monday, it notched its biggest gain since June
1, rising 0.8%.    
    Canadian government bond yields were higher across a steeper
curve in sympathy with U.S. Treasuries on Tuesday. The 10-year
            rose 3.9 basis points to 0.678%, having touched its
highest intraday since Aug. 28 at 0.694%.

 (Reporting by Fergal Smith
Editing by Mark Heinrich and Tom Brown)
  
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