Hamilton Chukyo Brokerage Says Canadian Dollar Strengthens As Economy Expands At A Record Rate

TORONTO, ON / ACCESSWIRE / January 4, 2021 / Hamilton Chukyo Brokerage has today said the Canadian dollar has improved against its U.S. equivalent, while the greenback weakened significantly and local reports showed the economy improving at a record rate in the third quarter.

“Canada’s economy grew by 40.5 per cent on an annual basis in the third quarter, bouncing back from the unprecedented decline in the second quarter, as companies and retailers re-opened from the COVID-19 lockdowns,” said Anthony Roberts, Head of Institutional Trading at Hamilton Chukyo Brokerage.

Separate information from IHS Markit shows that Canadian industrial operations improved for the fifth consecutive month in November as production and new orders increased.

The U.S. dollar dropped against a group of global currencies on increasing speculation that the Federal Reserve would move to help the economy in the harsh winter as coronavirus cases increase.

Canada is now seeing a rise in infections. On Monday, the budget shortfall expected by Ottawa will touch a historic $381.6 billion in emergency assistance from COVID-19.

“The Canadian dollar stood 0.4 per cent higher than the greenback at 1,2953, or 77.20 U.S. cents, having moved between 1,2942 and 1,3006,” said Michael Williams, Head of Private Wealth Management at Hamilton Chukyo Brokerage.

On Monday, the loonie hit the highest intraday point in more than two years at 1,2919. It ended in November at 2.4%.

The cost of oil, one of Canada’s main exports, plummeted on Tuesday as shareholders waited for the course of OPEC and its partners after the suppliers delayed a scheduled meeting to determine whether to withhold supply from January. U.S. oil prices fell by 0.8% to $44.99 per barrel.

Canadian government bond rates have been higher over a steeper curve in conjunction with the U.S. Treasures as Wall Street mobilized. The 10-year average was 2.9 percentage points at 0.709 per cent.

Hamilton Chukyo Brokerage provides financial advice and asset management services to private, institutional, and corporate clients worldwide.

Media Contact:
Christian Marcus, Head of Market Research
Telephone: +1 647 846 6480 | Email: christian.marcus@hcb-global.com
34F TD South Tower, 79 Wellington Street West, Toronto, Ontario, Canada

SOURCE: Hamilton Chukyo Brokerage

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