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Economy

Canadian dollar weakens as oil rally loses momentum

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3 years ago

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The Canadian dollar weakened against its U.S. counterpart on Tuesday, giving back some of the previous day’s sharp gains, as oil prices fell and domestic data showed a surprise trade deficit.

The loonie was trading 0.3% lower at 1.2706 to the greenback, or 78.70 U.S. cents, after trading in a range of 1.2665 to 1.2721.

“Some of that weakness has been attributed to the pullback we’re seeing with crude prices,” said Edward Moya, senior market analyst at OANDA in New York. “The relentless rally with oil it seems to be showing some exhaustion.”

The price of oil, one of Canada’s major exports, fell as investors worried the resumption of indirect talks between the United States and Iran could revive an international nuclear agreement and allow more oil exports from the OPEC producer.

U.S. crude oil futures settled 2.2% lower at $89.36 a barrel, while the U.S. dollar advanced against a basket of major currencies. It was supported by the Federal Reserve’s recent hawkish tone.

“Markets are bracing for an aggressive Fed and that could be confirmed with the inflation report later this week.”

U.S. consumer price index data for January is due on Thursday.

On Monday, the loonie climbed 0.8%, its biggest gain in nearly four weeks.

Canada posted a trade deficit of C$137 mln in December, much different than the C$2.5 billion surplus that economists had expected, as imports hit a new record high and exports fell from November.

Canadian government bond yields were higher across much of the curve, with the 10-year up 1.6 basis points at 1.854%.

It fell 2.5 basis points further below its U.S. equivalent to a gap of 10.3 basis points in favor of the U.S. bond, the biggest gap since September last year.

 

(Reporting by Fergal Smith; editing by Jason Neely and Sandra Maler)

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Economy

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

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3 days ago

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September 13, 2024

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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)

The Canadian Press. All rights reserved.

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Economy

Statistics Canada reports wholesale sales higher in July

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September 13, 2024

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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

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September 12, 2024

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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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