Connect with us

Economy

Canadian dollar steadies

Published

 on

Canadian dollar

The Canadian dollar was little changed against its U.S. counterpart on Monday, consolidating some recent gains as Wall Street edged lower and domestic data showed activity easing in Canada‘s red-hot housing market in April.

The loonie was trading nearly unchanged at 1.2100 to the greenback, or 82.64 U.S. cents. Last Wednesday, it touched a six-year high at 1.2042.

Canadian home sales fell 12.5% in April from March, with the average selling price also declining slightly on the month, data from the Canadian Real Estate Association showed.

Separate data from the Canadian Mortgage and Housing Corporation showed housing starts falling 19.8%.

U.S. stocks slipped as investors shifted their focus to retail earnings this week for clues on the strength of consumer spending.

Canada sends about 75% of its exports to the U.S. including oil and lumber. As U.S. Trade Representative Katherine Tai prepared to meet her Canadian and Mexican counterparts on Monday to review progress in the new North American trade agreement, she was under pressure from home builders and lawmakers to cut U.S. tariffs on Canadian lumber.

U.S. crude prices were up 0.20% at $65.5 a barrel as European economic reopenings offset gloom from surging COVID-19 cases in Asia and underwhelming Chinese manufacturing data.

Canada‘s inflation report for April is due on Wednesday which could offer clues on the Bank of Canada policy outlook.

If the Canadian dollar continues to rise, it could create headwinds for exports and business investment as well as affecting monetary policy, BoC Governor Tiff Macklem said last Thursday.

Speculators have raised their bullish bets on the Canadian dollar to the highest since November 2019, data from the U.S. Commodity Futures Trading Commission showed on Friday.

Canadian government bond yields were higher across a steeper curve. The 10-year rose 1.5 basis points to 1.578%.

 

(Reporting by Fergal Smith; Editing by Raissa Kasolowsky)

Continue Reading

Economy

Canada selects HSBC, TD Securities as advisors for inaugural green bond issue

Published

 on

The Government of Canada has selected HSBC and TD Securities as structuring advisors for its first ever issue of green bonds, expected in the current fiscal year that began in April, HSBC said in a statement on Monday.

HSBC and TD Securities were hired to advise on the design of Canada‘s green bond framework, assist in the development of the on-going program and support a successful inaugural issuance, the statement added.

 

(Reporting by Fergal Smith; Editing by Chizu Nomiyama)

Continue Reading

Economy

Canadian first quarter industry capacity use rises to 81.7%

Published

 on

Canadian industries ran at 81.7% of capacity in the first quarter of 2021, up from a upwardly revised 79.7% in the fourth quarter of 2020, Statistic Canada said on Friday.

The increase in the first quarter was driven by gains in construction and in mining, quarrying, and oil and gas extraction.

Following are the rates in percent:

Q1 2021 Q4 2020 (rev) Q4 2020 (prev)

Cap. utilization 81.7 79.7 79.2

Manufacturing 76.5 76.7 76.2

NOTE: Economists surveyed by Reuters had forecast a first quarter rate of 80.6% capacity utilization.

(Reporting by Steve Scherer, editing by Dale Smith (steve.scherer@tr.com))

Continue Reading

Economy

UK, Canada agreed to redouble efforts for trade deal

Published

 on

British Prime Minister Boris Johnson and Canadian Prime Minister Justin Trudeau agreed on Friday to redouble their efforts to secure a trade agreement as soon as possible to unlock such a deal’s “huge opportunities”.

“The leaders agreed a comprehensive Free Trade Agreement between the UK and Canada would unlock huge opportunities for both of our countries. They agreed to redouble their efforts to secure an FTA (free trade agreement) as soon as possible,” Downing Street spokesperson said in a statement.

“They discussed a number of foreign policy issues including China and Iran.”

 

(Reporting by Guy Faulconbridge, writing by Elizabeth Piper)

Continue Reading

Trending