* Loonie hits its strongest since Sept. 17 * For the week, currency gains 0.4% * Wholesale trade grows 0.1% in October * Bond yields trade mixed on steeper curve By Fergal Smith TORONTO, – The Canadian dollar held on to its weekly advance against its U.S. counterpart on Friday as investors next bet Canada that the Federal Reserve Bank will move in a different direction. policy. The loonie traded almost unchanged at 1.3765 per US dollar, or 72.65 US cents, after hitting its strongest intraday level since September 17 at 1.3751. The currency rose 0.4% for the week, its third straight weekly gain, as the Bank of Canada left its benchmark interest rate at a three-year low of 2.25% and the Federal Reserve expanded its easing campaign. “The market is looking at divergence in monetary policy,” said Adam Button, chief currency analyst at investingLive. “Months of strong economic data have finally convinced the market that the Bank is done cutting rates and now we are starting to hear talk of rate hikes in the second half of 2026.” Investors have fully discounted a BoC rate hike next year as they bet on about 50 basis points of additional Fed easing. “Canada has faced some major challenges over the past year and the economy has held up better than almost anyone thought,” Button said. Canadian wholesale trade grew 0.1% in October from September due to higher sales in the motor vehicle and motor vehicle parts and accessories subsectors. Analysts had predicted a 0.1% drop. Separate data showed October building permits rose 14.9% and capacity utilization increased to 78.5% in the third quarter. The price of oil, one of Canada’s main exports, settled 0.3% lower at $57.38 a barrel as investors focused on abundant supply and a potential peace deal between Russia and Ukraine. Canadian bond yields were mixed across a steeper curve, with the 10-year up 1.6 basis points at 3.453%. This article was generated from an automated news agency feed with no text modifications.