Canadian dollar holds on to weekly gain as oil climbs | Canada News Media
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Economy

Canadian dollar holds on to weekly gain as oil climbs

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The Canadian dollar was little changed against its U.S. counterpart on Friday, holding on to this week’s gains, as oil prices rose and investors weighed weaker-than-expected U.S. retail sales data.

U.S. retail sales dropped 1.9% in December, compared to estimates for an unchanged reading, as Americans struggled with shortages of goods and an explosion of COVID-19 infections.

Canada sends about 75% of its exports to the United States, including oil, which was on course for a fourth weekly gain boosted by supply constraints and a weaker U.S. dollar.

U.S. crude prices on Friday rose 0.7% to $82.65 a barrel, while the Canadian dollar was trading nearly unchanged at 1.2519 to the greenback, or 79.88 U.S. cents.

The currency traded in a range of 1.2470 to 1.2535, after touching on Thursday its strongest intraday level in more than two months at 1.2449.

For the week, the loonie was on track to gain 1% after sending a bullish signal to some investors by breaking the neckline of a head-and-shoulders trend reversal pattern at about 1.2600.

Canada will sign onto a complaint against the United States over its interpretation of how free trade should apply to the continental auto industry, another sign of souring ties between the North American neighbors.

Canadian government bond yields edged higher across the curve. The 10-year touched its highest since Nov. 26 at 1.759% before dipping to 1.715%, up nearly one basis point on the day.

 

(Reporting by Fergal Smith; Editing by Nick Zieminski)

Economy

PBO projects deficit exceeded Liberals’ $40B pledge, economy to rebound in 2025

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OTTAWA – The parliamentary budget officer says the federal government likely failed to keep its deficit below its promised $40 billion cap in the last fiscal year.

However the PBO also projects in its latest economic and fiscal outlook today that weak economic growth this year will begin to rebound in 2025.

The budget watchdog estimates in its report that the federal government posted a $46.8 billion deficit for the 2023-24 fiscal year.

Finance Minister Chrystia Freeland pledged a year ago to keep the deficit capped at $40 billion and in her spring budget said the deficit for 2023-24 stayed in line with that promise.

The final tally of the last year’s deficit will be confirmed when the government publishes its annual public accounts report this fall.

The PBO says economic growth will remain tepid this year but will rebound in 2025 as the Bank of Canada’s interest rate cuts stimulate spending and business investment.

This report by The Canadian Press was first published Oct. 17, 2024.

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Economy

Statistics Canada says levels of food insecurity rose in 2022

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OTTAWA – Statistics Canada says the level of food insecurity increased in 2022 as inflation hit peak levels.

In a report using data from the Canadian community health survey, the agency says 15.6 per cent of households experienced some level of food insecurity in 2022 after being relatively stable from 2017 to 2021.

The reading was up from 9.6 per cent in 2017 and 11.6 per cent in 2018.

Statistics Canada says the prevalence of household food insecurity was slightly lower and stable during the pandemic years as it fell to 8.5 per cent in the fall of 2020 and 9.1 per cent in 2021.

In addition to an increase in the prevalence of food insecurity in 2022, the agency says there was an increase in the severity as more households reported moderate or severe food insecurity.

It also noted an increase in the number of Canadians living in moderately or severely food insecure households was also seen in the Canadian income survey data collected in the first half of 2023.

This report by The Canadian Press was first published Oct 16, 2024.

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Economy

Statistics Canada says manufacturing sales fell 1.3% to $69.4B in August

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OTTAWA – Statistics Canada says manufacturing sales in August fell to their lowest level since January 2022 as sales in the primary metal and petroleum and coal product subsectors fell.

The agency says manufacturing sales fell 1.3 per cent to $69.4 billion in August, after rising 1.1 per cent in July.

The drop came as sales in the primary metal subsector dropped 6.4 per cent to $5.3 billion in August, on lower prices and lower volumes.

Sales in the petroleum and coal product subsector fell 3.7 per cent to $7.8 billion in August on lower prices.

Meanwhile, sales of aerospace products and parts rose 7.3 per cent to $2.7 billion in August and wood product sales increased 3.8 per cent to $3.1 billion.

Overall manufacturing sales in constant dollars fell 0.8 per cent in August.

This report by The Canadian Press was first published Oct. 16, 2024.

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