Economy

Canadian dollar gains as manufacturing strength cheers investors

Published

3 years ago

April 3, 2021

By Fergal Smith

TORONTO (Reuters) – The Canadian dollar edged higher against its U.S. counterpart on Thursday, the start of a seasonally strong month for the currency, as oil rose and domestic data showed factory activity expanding at a record pace in March.

The IHS Markit Canada Manufacturing Purchasing Managers’ index (PMI) rose to a seasonally adjusted 58.5 in March from 54.8 in February, posting the highest reading in the 10-year history of the survey.

A measure of U.S. manufacturing activity for March was also robust, soaring to its highest level in more than 37 years. Canada sends about 75% of its exports to the United States, including oil.

“The demand story for manufactured goods and raw materials continues to heat up,” said Adam Button, chief currency analyst at ForexLive. “For an exporter like Canada, it bodes well for many months ahead.”

Separate data from Statistics Canada showed that the value of building permits rose by 2.1% in February from a month earlier, beating expectations of a 1.4% decline.

Analysts have raised their Canadian dollar forecasts for the coming year, expecting the currency to benefit from faster growth in the domestic economy and a potential reduction of Bank of Canada bond purchases, a Reuters poll showed.

The Canadian dollar was trading 0.1% higher at 1.2547 to the greenback, or 79.70 U.S. cents. The currency has gained ground in eight of the last 10 Aprils.

“The seasonal tailwind in the Canadian dollar is undeniable in April and we may be seeing a reflection of that today,” Button said.

U.S. crude oil futures settled 3.9% higher at $61.45 a barrel after news that OPEC+ reached a deal to gradually ease production cuts from May.

Canada‘s 10-year yield eased 4.7 basis points to 1.513%, with the bond market closing early ahead of the Good Friday holiday.

(Reporting by Fergal Smith; Editing by Kirsten Donovan; editing by Grant McCool)

Economy

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

Published

15 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

22 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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