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Canadian dollar hits 6-day low as month-end buying lifts greenback

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The Canadian dollar weakened on Wednesday to its lowest level in nearly a week against its U.S. counterpart as oil prices fell and the greenback posted broad-based gains.

The loonie was trading 0.5% lower at 1.2749 to the greenback, or 78.44 U.S. cents, after touching its weakest level since last Thursday at 1.2774.

“Month-end flows are likely playing a role in the broad dollar strength today,” said Erik Nelson, a currency strategist at Wells Fargo in New York. “Risk sentiment remains shaky, which has also weighed on the Canadian dollar.”

The U.S. dollar surged to a 10-1/2-month peak against rival currencies, including the euro, even though a dispute in Washington over the U.S. debt ceiling threatened to plunge the government into a shutdown.

Losses for the loonie “accelerated” as the euro fell to its lowest level of the year, Nelson said.

The price of oil, one of Canada‘s major exports, was pressured by an unexpected rise in U.S. crude inventories and concerns about a slowing Chinese economy. U.S. crude oil futures settled 0.6% lower at $74.83 a barrel.

Producer prices in Canada fell by 0.3% in August from July on lower prices for softwood lumber, Statistics Canada said. Still, they were up 14.3% from August last year.

Canadian government bond yields rose even as traders paused their selling of U.S. Treasuries.

The Canadian 10-year yield was up 2.3 basis points at 1.523%, while the gap between it and its U.S. equivalent narrowed by 1.8 basis points to a spread of 1.8 basis points in favor of the U.S. bond, its smallest since April last year.

Canada‘s bond market will be closed on Thursday for the National Day for Truth and Reconciliation. GDP data for July is due on Friday, which could provide clues on the Bank of Canada policy outlook.

 

(Reporting by Fergal Smith; Editing by Jonathan Oatis and Peter Cooney)

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Economy

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

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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)

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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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