Canada’s dollar rose for a fourth day, the longest stretch of gains since July, as traders re-evaluated bets the nation’s economy would trail the U.S.’s in light of recent data that’s shown stronger-than-forecast growth.
The currency touched an almost four-week high versus its U.S. peer as President Barack Obama postponed a decision on military strikes against Syria to pursue a diplomatic solution to that country’s alleged chemical-weapons use, boosting riskier assets. Canada’s dollar strengthened past its 100-day moving average after data last week showed the economy created triple the jobs analysts forecast in August while U.S. payroll growth was less than projected.
“It looks like the path of least resistance, at least for the loonie, is to the upside,” Joe Manimbo, a market analyst in Washington at Western Union Business Solutions, a unit of Western Union Co., said in a phone interview. “We had that blockbuster jobs report out of Canada last week, and that’s really been echoed in some of the other surveys we’ve seen across Canada. So, yeah, I think the fundamental picture has also shown signs of improvement.”
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