Economy

Canadian Dollar dips as Bank of Canada skips changes to forward guidance

Published

4 years ago

March 10, 2021

By Fergal Smith

TORONTO (Reuters) – The Canadian dollar edged lower against its U.S. counterpart on Wednesday, as the Bank of Canada said the economy was stronger than expected but stopped short of adjusting its forward guidance on interest rates or the amount of bonds it purchases.

The central bank said it now expects positive GDP growth in the first quarter of 2021, rather than the contraction it forecast in January. Still, it left its benchmark interest rate unchanged at a record low of 0.25% and said it would stay there until economic slack is absorbed, which in its January projection does not happen until into 2023.

The market has been betting that the BoC would tighten as soon as next year, with the first rate hike coming ahead of the Federal Reserve.

“We don’t see that in the data and it would be to the Bank of Canada‘s detriment to go first because it would make the currency stronger,” said Darcy Briggs, a portfolio manager at Franklin Templeton Canada.

“That doesn’t help our case, that’s a tightening of financial conditions, given that we are supposed to be relying on exports as a growth driver.”

The Canadian dollar was trading 0.1% lower at 1.2648 to the greenback, or 79.06 U.S. cents, having traded in a range of 1.2613 to 1.2683. Last month, the loonie touched a three-year high at 1.2464.

Data showing tame U.S. underlying inflation boosted Wall Street but the price of oil, one of Canada‘s major exports, headed lower for a third straight day. U.S. crude prices were down nearly 1% at $63.39 a barrel.

Canadian government bond yields eased across much of the curve, with the 10-year down 1.5 basis points at 1.431%. On Monday, it touched its highest level since January 2020 at 1.545%.

(Reporting by Fergal Smith in Toronto; Editing by Andrea Ricci and Matthew Lewis)

Economy

S&P/TSX composite gains almost 100 points, U.S. stock markets also higher

Published

14 hours ago

September 13, 2024

Anne Joseph

TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.

The S&P/TSX composite index closed up 93.51 points at 23,568.65.

In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.

The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.

The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.

The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

Statistics Canada reports wholesale sales higher in July

Published

21 hours ago

September 13, 2024

Anne Joseph

OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.

The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.

The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.

The personal and household goods subsector fell 2.5 per cent to $12.1 billion.

In volume terms, overall wholesale sales rose 0.5 per cent in July.

Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.

This report by The Canadian Press was first published Sept. 13, 2024.

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets mixed

Published

2 days ago

September 12, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 172.18 points at 23,383.35.

In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.

The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.

The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.

The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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