USD/CAD above 1.04 amid Signs of U.S Debt Compromise

Canada’s dollar was little changed amid speculation U.S. lawmakers running the government of its largest trading partner may agree on a short-term increase in the debt ceiling.

The currency strengthened from a four-week low as the Standard & Poor’s 500 Index of stocks rose 2.2 percent, suggesting an increase in risk appetite. House Speaker John Boehner offered a plan to put off the U.S. debt limit for six weeks, said Michael Steel, his spokesman. Statistics Canada may report tomorrow the nation’s unemployment was unchanged at 7.1 percent last month, a Bloomberg survey showed. Mexico’s peso and Australia’s dollar gained.

“All the risk currencies have moved a little bit higher,” Camilla Sutton, head of currency strategy at Bank of Nova Scotia (BNS), said by phone from Toronto. “We haven’t had dramatic moves in currencies at all, and with the lack of data in the U.S., we really have a lack of clarity overall.”

Bloomberg

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