CAD Climbs Third Week as Yield Spreads Narrow

The Canadian dollar continued its upward trend for the third consecutive week, reaching 1.39 per USD.

This strengthening is attributed to narrowing yield spreads and domestic factory data supporting recent bond yield changes.

The spread between Canada's 2-year yield and the US equivalent has narrowed by about 17 basis points this month.

CANADA FACTORY SALES ROSE 0.1% in June from May, marking a fifth consecutive monthly gain, while sales volumes increased 1.2%.

This contrasts with US retail sales unexpectedly falling in July by the most in over a year.