Friday, November 28th-9.2°C
23286

Loonie up after sharp declines, traders look to Bank of Canada rate announcement

TORONTO - The Canadian dollar closed higher Thursday as the currency continued to stabilize following a string of sharp declines.

The loonie was up 0.16 of a cent to 91.53 cents US after a flat performance the previous session.

But the currency has slid almost three per cent so far this year amid disappointing trade and employment data and a dovish stance by the Bank of Canada on interest rates.

Also, the U.S. dollar has trended higher as the Federal Reserve starts to cut back on its massive bond purchases which have kept long-term rates low and encouraged a strong rally on equity markets.

The Fed has cut monthly bond purchases by US$10 billion to $75 billion, but says further tapering depends on the strength of the economy, particularly job creation.

Traders are now looking ahead to next Wednesday's Bank of Canada interest rate announcement for further indications of what the central bank might do about rates. There are some analysts who expect the central bank to cut rates this year.

On the commodity markets, February crude on the New York Mercantile Exchange slipped 21 cents to US$93.96 a barrel.

March copper declined two cents to $3.34 a pound while February bullion gained $1.90 to US$1,240.20 an ounce.

On the economic front, the U.S. consumer price index rose a slight 0.3 per cent in December, translating into an annualized rate of 1.5 per cent.

And the U.S. Labor Department said that claims for jobless benefits declined last week by 2,000 to 326,000, which was in line with expectations.

This is the first glimpse of the job market since the release last Friday of disappointing employment data that showed job creation coming in at 74,000, far less than the 200,000 that had been expected.

The Canadian Press


Read more Business News

24053


Recent Trending




Today's Market
S&P TSX14744.70-177.74
S&P CDNX741.87-13.53
DJIA17828.240.49
Nasdaq4791.63+4.312
S&P 5002067.56-5.27
CDN Dollar0.8756-0.0004
Gold1175.20-21.40
Oil66.15-7.54
Lumber329.40+1.40
Natural Gas4.295+0.144

 
Okanagan Companies
Pacific Safety0.145-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.27-0.07
Cantex0.04-0.005
Anavex Life Sciences0.1998+0.0288
Metalex Ventures0.06+0.02
Russel Metals29.91-0.79
Copper Mountain Mining1.94-0.18
Colorado Resources0.125-0.005
ReliaBrand Inc0.0134-0.0001
Sunrise Resources Ltd0.05+0.005
Mission Ready Services0.325+0.005

 
23744


22899

FEATURED Property
2122842211-770 Rutland Rd.
2 bedrooms 2 baths
$199,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Don't stop dreaming!

On Wednesday evening I drove through the Bow Valley in Alberta. It is my old home town... the first place Jackie and I moved to in 1988 when we emigrated. We ended up setting up home there and living...


Second marriage issues

It is not unusual that one or both of the parties planning to marry are approaching marriage for the second time. There are pluses and minuses to this new situation. On the plus side, individuals ente...


The last great Canadian tax shelter

A guide to how flow-through fund limited partnerships can mightily aid your tax planning!The end of the year will raise concerns among many professionals, self-employed persons, business owners and ev...

_



24160

24207


Member of BC Press Council


22842