The Canadian dollar was higher Monday amid mixed economic news from Asia and Europe.
The loonie rose 0.14 of a cent to 93.15 cents US on top of a gain of almost two-thirds of a cent on Friday to a five-month high. The currency rose sharply as higher than expected inflation data on Friday raised questions about whether the Bank of Canada might move interest rates higher sooner than thought.
“On the back of the CPI release, expectations for the BoC first interest rate hike increased marginally, but still stand at just a 13 per cent probability in the next year,” said Camilla Sutton, Chief FX Strategist, Managing Director Scotiabank Global Banking and Markets.
Meanwhile, data released Sunday showed the Chinese manufacturing sector moving into expansion territory. HSBC’s purchasing managers index hit a seven-month high at 50.8, the first time the index has moved above the 50 level since December.
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