Canadian dollar edges higher, boosted by manufacturing sales gain
Reuters
Published Nov 16, 2017 09:39AM ET
Canadian dollar edges higher, boosted by manufacturing sales gain
By Fergal Smith
TORONTO (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Thursday as data showing a surprise rise in domestic manufacturing sales in September offset lower oil prices.
The 0.5 percent increase in manufacturing sales topped economists' forecasts for a 0.3 percent decline, while volumes rose 0.7 percent.
The data was "modestly positive for the Canadian dollar," Nick Exarhos, an economist at CIBC Capital Markets, said in a research report. "But the narrow scope of the increase and the still troubling trend in export volumes continues to point to reasons for concern ahead."
Prices of oil, one of Canada's major exports, dipped on rising U.S. crude production and inventories.
U.S. crude (CLc1) prices were down 0.27 percent at $55.18 a barrel.
Investors have also been focusing this week on the resumption of North American Free Trade Agreement renegotiations. NAFTA working groups began meeting on Wednesday in Mexico. Talks will begin on Friday and continue through Nov. 21.
A cautious approach to monetary policy may be prudent during times of uncertainty like today, but caution has its limits because the trade-off can be financial instability, Bank of Canada Senior Deputy Governor Carolyn Wilkins said on Wednesday.
At 9:20 a.m. ET (1420 GMT), the Canadian dollar CAD=D4 was trading at C$1.2750 to the greenback, or 78.43 U.S. cents, up 0.1 percent.
The currency traded in a narrow range of C$1.2742 to C$1.2785.
Canadian companies cut 5,700 workers from their payrolls in October, with the loss concentrated in the goods-producing sector, according to a new employment report from ADP.
Foreign investors bought a net C$16.81 billion in Canadian securities in September, led by Canadian bonds, following a revised C$9.77 billion acquisition in August, Statistics Canada said.
Canadian government bond prices were lower across the yield curve in sympathy with U.S. Treasuries as global markets regained some of their risk appetite after a sharp sell-off in stocks over the past week.
The two-year (CA2YT=RR) fell 2.5 Canadian cents to yield 1.462 percent and the 10-year (CA10YT=RR) declined 19 Canadian cents to yield 1.938 percent.
Canada is due to auction C$500 million of its ultra-long bonds at 12:00 p.m. ET (1700 GMT).
Get The News You Want
The country's inflation report for October will be released on Friday.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.