USD/CAD to 1.0350 on Building Permits and Employment Growth

The Canadian dollar gained for a third day, touching a three-week high, as a Russian bid to get Syria to surrender its chemical weapons that may avert a U.S. attack boosted demand for riskier assets.

The currency advanced versus the majority of its 16 most-traded peers even after Canada’s federal housing agency said housing starts in August posted their biggest drop in seven months. The currency gained the previous two days against its U.S. counterpart as data on building permits and employment growth exceeded analysts’ forecasts. Yields on government 10-year bonds rose to a two-year high.

“There seems to be a slight shift towards a potential diplomatic solution in Syria, which has eased the risk-aversion trades,” said Matthew Perrier, director of foreign exchange at Bank of Montreal, by phone from Toronto. “We continue to benefit from the stronger Canadian employment data on Friday.”


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.