- December 30, 2018
- Posted by: Trading
- Category: News
* Canadian dollar rises 0.1 percent against greenback
* Canadian wholesale trade rises 1 percent in October
* Price of U.S. oil falls 3.1 percent
* Canadian bond prices rise across the yield curve
TORONTO, Dec 20 (Reuters) – The Canadian dollar edged higher against its U.S. counterpart on Thursday, steadying after it hit a 1-1/2-year low on Wednesday, as the greenback broadly declined and domestic data showed increases in jobs and wholesale trade.
Canadian wholesale trade increased by 1.0 percent in October from September, as stronger sales in the machinery, equipment and supplies subsector led the gains, Statistics Canada said. Analysts had forecast a 0.4 percent increase. separate report from ADP (NASDAQ:) showed that Canada added 39,100 jobs in November, with broad-based gains across industries led by a pickup in hiring in trade, transportation and utilities. U.S. dollar fell to a one-month low against a basket of six major currencies on growing concerns the Federal Reserve may be raising interest rates just as the world’s biggest economy faces a slowdown. The Fed on Wednesday delivered its fourth rate hike of 2018 and forecast further tightening next year. 9:02 a.m. (1402 GMT), the Canadian dollar CAD=D4 was trading 0.1 percent higher at 1.3469 to the greenback, or 74.24 U.S. cents. The currency, which touched on Wednesday its weakest level since June 2017 at 1.3507, traded in a range of 1.3447 to 1.3504.
The rose despite further pressure on the price of crude oil, one of Canada’s major exports.
U.S. crude oil futures were down 3.1 percent at $46.69 a barrel on worries about oversupply and the outlook for energy demand as the Fed rate hike knocked stock markets. government bond prices edged higher across the yield curve, with the two-year up 0.5 Canadian cent to yield 1.886 percent and the 10-year rising 5 Canadian cents to yield 1.956 percent.
On Wednesday, the 10-year yield touched its lowest since Dec. 20, 2017 at 1.949 percent.
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