Breaking News
Close
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

CANADA FX DEBT-C$ hits 5-week low as trade data dims rate hike prospects

Forex Oct 05, 2017 09:40
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. CANADA FX DEBT-C$ hits 5-week low as trade data dims rate hike prospects

* Canadian dollar at C$1.2542, or 79.73 U.S. cents

* Loonie touches its weakest since Aug. 31 at C$1.2546

* Canada's trade deficit widens in August to C$3.41 billion

* Bond prices higher across the yield curve

By Fergal Smith

TORONTO, Oct 5 (Reuters) - The Canadian dollar weakened to a five-week low against its U.S. counterpart on Thursday after domestic data showing a drop in exports for the third straight month further weakened prospects of another interest rate hike this year from the Bank of Canada.

Canada's trade deficit widened in August to C$3.41 billion from a revised C$2.98 billion shortfall in July, as exports fell for a third consecutive month, Statistics Canada said.

"This is another disappointing trade report," said Ryan Brecht, a senior economist at Action Economics.

It suggests the Bank of Canada will not change rates this month and reduces the chances of a rate hike in December, Brecht said.

The central bank has raised rates twice since July. But the chances of another hike this year dropped to 60 percent from 66 percent before the data, the overnight index swaps market indicated. They were nearly 100 percent before Governor Stephen Poloz signaled last week that a third hike was not imminent. BOCWATCH

At 9:19 a.m. ET (1319 GMT), the Canadian dollar CAD=D4 was trading at C$1.2542 to the greenback, or 79.73 U.S. cents, down 0.5 percent.

The currency's strongest level of the session was C$1.2463, while it touched its weakest since Aug. 31 at C$1.2546.

The price of oil, one of Canada's major exports, steadied on expectations that Saudi Arabia and Russia would extend production cuts. crude CLc1 prices were up 0.24 percent at $50.10 a barrel.

Canadian government bond prices were higher across the yield curve, with the two-year CA2YT=RR up 2.5 Canadian cents to yield 1.52 percent and the 10-year CA10YT=RR rising 15 Canadian cents to yield 2.103 percent.

The gap between Canada's two-year yield and its U.S. equivalent narrowed by 1.4 basis points to a spread of 3.7 basis points.

Canada's September employment report is due on Friday.

CANADA FX DEBT-C$ hits 5-week low as trade data dims rate hike prospects
 

Related Articles

Dollar Edges Lower as Investors Weigh Powell Testimony
Dollar Edges Lower as Investors Weigh Powell Testimony By Investing.com - Jun 24, 2022

By Scott Kanowsky   Investing.com -- The U.S. dollar slipped slightly on Friday, as investors remained cautious of the impact of tighter central bank policies around the world...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
DOWNLOAD APPApp store
Investing.com
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: 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.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
or
Sign up with Email