C$ notches weekly gain as market works off oversold position

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TORONTO - The Canadian dollar strengthened against its U.S. counterpart on Friday as oil prices rose and the market took stock of recent losses for the currency, but the move was limited following the recent move in yield spreads in favor of the greenback.

"The Canadian dollar coming back somewhat is simply technical from an oversold market," said Michael Goshko, senior market analyst at Convera Canada. "We saw interest rate spreads between Canada and the U.S. just absolutely widen out," Goshko said."That definitely had a negative impact on the Canadian dollar...."It's going to be hard for Canada to gain much ground."

 

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