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Economy

Canadian dollar lags G10 peers

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Canadian dollar

The Canadian dollar edged lower against its broadly weaker U.S. counterpart on Tuesday as domestic data showed a likely drop in manufacturing sales in April, with the currency remaining capped by last week’s 6-year high.

The loonie was trading 0.2% lower at 1.2060 to the greenback, or 82.92 U.S. cents, the biggest decline among G10 currencies. Last Tuesday, it touched its strongest level since May 2015 at 1.2013, bolstered by higher commodity prices this year and the Bank of Canada‘s more hawkish stance.

Still, the current loss of momentum for the loonie could be temporary.

“We continue to target a deeper push below 1.20 in the coming months,” strategists at Scotiabank, including Shaun Osborne, said in a note.

“There appears to be little concern at the central bank about the CAD and the message is clear that the central bank will keep policy settings aligned with the economy as it works toward its goals,” the strategists said.

Canadian factory sales likely fell 1.1% in April from March, giving back some of the previous month’s increase, a flash estimate from Statistics Canada showed.

The U.S. dollar hit 4-1/2 month lows against a basket of peers as markets seemed to accept U.S. Federal Reserve arguments that monetary policy should stay easy because inflationary forces are broadly weak.

The price of oil, one of Canada‘s major exports, settled 2 cents higher at $66.07 a barrel, supported by rising demand from the approach of the Northern Hemisphere’s summer driving season and lifting of coronavirus restrictions.

Canadian government bond yields were lower across a flatter curve. The 10-year hit its lowest since May 7 at 1.478% before edging up to 1.480%, down 6.3 basis points on the day.

 

(Reporting by Fergal Smith; Editing by Andrea Ricci and Dan Grebler)

Economy

September merchandise trade deficit narrows to $1.3 billion: Statistics Canada

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OTTAWA – Statistics Canada says the country’s merchandise trade deficit narrowed to $1.3 billion in September as imports fell more than exports.

The result compared with a revised deficit of $1.5 billion for August. The initial estimate for August released last month had shown a deficit of $1.1 billion.

Statistics Canada says the results for September came as total exports edged down 0.1 per cent to $63.9 billion.

Exports of metal and non-metallic mineral products fell 5.4 per cent as exports of unwrought gold, silver, and platinum group metals, and their alloys, decreased 15.4 per cent. Exports of energy products dropped 2.6 per cent as lower prices weighed on crude oil exports.

Meanwhile, imports for September fell 0.4 per cent to $65.1 billion as imports of metal and non-metallic mineral products dropped 12.7 per cent.

In volume terms, total exports rose 1.4 per cent in September while total imports were essentially unchanged in September.

This report by The Canadian Press was first published Nov. 5, 2024.

The Canadian Press. All rights reserved.

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How will the U.S. election impact the Canadian economy? – BNN Bloomberg

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How will the U.S. election impact the Canadian economy?  BNN Bloomberg

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Trump and Musk promise economic 'hardship' — and voters are noticing – MSNBC

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Trump and Musk promise economic ‘hardship’ — and voters are noticing  MSNBC

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