The Canadian dollar appreciated for the first time in five days, rising from a more than three-year low, amid speculation employment growth may suggest stronger economic improvement than the Bank of Canada indicated.
Bank of Canada Governor Stephen Poloz kept his main interest rate unchanged and said the risks of inflation staying below target “appear to be greater” in an economy that’s two years away from reaching full output.
Treasuries rose for a fourth day as the government’s auction of $35 billion in five-year notes attracted stronger-than-forecast demand as investors bet the Federal Reserve will keep short-term borrowing rates low.
U.S. stocks erased gains as investors sold equities in the final 30 minutes of trading before changes to MSCI Inc. indexes, trimming an earlier rally after improved housing data. Treasuries advanced while Europe’s benchmark gauge fell for the first time in three days.
Canada’s dollar gained the most in a month after Federal Reserve Chairman-nominee Janet Yellen signaled she’ll push the stimulus that has boosted global risk appetite to ensure a robust recovery in the U.S. economy.
Treasuries rose as 10-year note yields at almost the highest levels in eight weeks attracted buyers as Janet Yellen said the U.S. economy must improve before the Federal Reserve can begin slowing bond purchases.
TMX Group Ltd., owner of the Toronto Stock Exchange, reported third-quarter adjusted profit that beat analysts’ estimates, as cost reductions overshadowed a drop in revenue caused by lower trading volume.
Canada’s gross domestic product grew faster than economists forecast in August on record extraction of oil and natural gas, putting the economy on track for its fastest quarterly expansion in two years.