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Economy

Canadian dollar hits 1-week low on slumping risk appetite

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3 years ago

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The Canadian dollar weakened against its U.S. counterpart on Monday as the greenback broadly climbed and extreme volatility in oil prices weighed on Wall Street.

The loonie was 0.5% lower at 1.2790 to the greenback, or 78.19 U.S. cents, after trading between 1.2686 and 1.2801. Except for brief periods, the 1.28 area has marked the top of the range for USD-CAD since the start of the year.

“Equities and high-risk currencies like the Canadian dollar are lower across the board,” said Darren Richardson, chief operating officer at Richardson International Currency Exchange Inc.

FX traders have decided to ignore the move higher in oil prices and focus on the decline in risk appetite,” Richardson said.

The price of oil, one of Canada’s major exports, spiked to its highest level since 2008 at $130.50 a barrel before paring gains, as the United States and European allies considered banning Russian oil imports. U.S. crude oil futures settled 3.2% higher at $119.40 a barrel.

The prospect of surging commodity prices hurting economic activity was a drag on investor sentiment. Equity markets globally tumbled, while the safe-haven U.S. dollar rose against a basket of major currencies.

Still, speculators have raised their bullish bets on the Canadian dollar, data from the U.S. Commodity Futures Trading Commission showed on Friday.

Canadian international trade data for January is due on Tuesday and the February employment report is due on Friday, which could offer clues on the strength of the domestic economy.

Canadian government bond yields were higher across the curve, tracking the move in U.S. Treasuries.

The 10-year rose 4.1 basis points to 1.705%, rebounding from its lowest level since Jan. 5 at 1.643% earlier in the day.

 

(Reporting by Fergal Smith; editing by Jonathan Oatis and Nick Zieminski)

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Economy

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

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2 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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2 days ago

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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)

The Canadian Press. All rights reserved.

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