TORONTO, July 4 (Reuters) - The Canadian dollar strengthened to a two-week high against its U.S. counterpart on Thursday as investors took advantage of market gyrations following the release of U.S. employment data to sell the greenback.
The loonie was trading 0.2% higher at 1.3560 per U.S. dollar, or 73.75 U.S. cents, after touching its strongest intraday level since June 17 at 1.3557.
TORONTO, July 4 (Reuters) - The Canadian dollar strengthened to a two-week high against its U.S. counterpart on Thursday as investors took advantage of market gyrations following the release of U.S. employment data to sell the greenback.
The loonie was trading 0.2% higher at 1.3560 per U.S. dollar, or 73.75 U.S. cents, after touching its strongest intraday level since June 17 at 1.3557.
"The market remains firmly biased to sell rallies in the greenback," said George Davis, chief technical strategist at RBC Capital Markets.
The U.S. dollar is expected to remain weak over the coming months, according to a Reuters poll of FX analysts, who forecast a tangle of mounting U.S. debt concerns, erratic tariff policies, and rising expectations for interest rate cuts.
Canada's trade deficit narrowed to C$5.9 billion ($4.34 billion) in May after hitting a record level of C$7.6 billion in April. Exports increased 1.1% every month after slumping 11% in April as higher shipments of gold to the United Kingdom offset reduced trade with the United States.
"The Canadian dollar is paying little heed to domestic fundamentals, and is instead simply following most of its global rivals higher against the greenback," said Karl Schamotta, chief market strategist at Corpay.
The price of oil, one of Canada's major exports, fell 0.7% to $66.95 a barrel, giving back some of the previous day's gains.
Canadian government bond yields rose across the curve, tracking movements in U.S. Treasuries. The 10-year was up 2.8 basis points at 3.387%.
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