Thursday, October 23rd10.9°C
23840
22916

Canadian dollar rises despite widening trade deficit; traders look to jobs data

TORONTO - The Canadian dollar closed higher Thursday even as government data showed the country's international trade position worsened in December.

The loonie shed early losses to move up 0.08 of a cent to 90.33 cents US after Statistics Canada reported the trade deficit was $1.7 billion in December. That was up from a revised deficit figure for November, which StatsCan increased to $1.5 billion from $900 million.

The agency reported that merchandise imports grew by 1.2 per cent in December while exports increased 0.9 per cent.

The loonie gained while the greenback weakened after European Central Bank president Mario Draghi said he didn’t expect deflation to take hold in Europe because there was no downward price spiral feeding on itself.

Earlier in the day, the ECB opted to leave its key interest rate unchanged at 0.25 per cent.

Another source of U.S. dollar weakness was the latest trade numbers.

The U.S. trade deficit increased in December to $38.7 billion, up 12 per cent over November. U.S. exports slipped 1.8 per cent to $191.3 billion while imports were up 0.3 per cent to $230 billion. But for the year, the deficit fell to its lowest point since 2009 as exports rose to an all-time high.

Traders are now focused on Canadian employment data for January which comes out Friday. Economists are looking for a gain of about 20,000 jobs.

The U.S. government's employment report for January also comes out Friday. Economists expect that 183,000 jobs were created during the month following a meagre 74,000 gain in December that was largely blamed on the weather.

On Thursday, traders took in the latest reading on U.S. jobless insurance claims, which are a proxy for layoffs. They fell last week by a greater than expected 20,000 to 331,000 last week.

On the commodity markets, March crude on the New York Mercantile Exchange moved 46 cents higher to US$97.84 a barrel.

March copper was up four cents to US$3.23 a pound while April gold bullion inched up 30 cents to US$1,257.20 an ounce.

The Canadian Press


Read more Business News

23028


Recent Trending




Today's Market
S&P TSX14486.83+174.76
S&P CDNX808.600.60
DJIA16677.90216.58
Nasdaq4452.792+69.945
S&P 5001950.82+23.71
CDN Dollar0.8902+0.0007
Gold1232.10-13.40
Oil81.60+1.47
Lumber331.20+2.50
Natural Gas3.649-0.01

 
Okanagan Companies
Pacific Safety0.11-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.17+0.02
Cantex0.0550.00
Anavex Life Sciences0.1980.00
Metalex Ventures0.04-0.01
Russel Metals33.16+0.63
Copper Mountain Mining2.08-0.02
Colorado Resources0.14-0.005
ReliaBrand Inc0.013+0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.41+0.005

 



22970

FEATURED Property
1786985386 Uplands Court, Kelowna, BC
10089124 bedrooms
$459,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Weakening global growth worries

The Big Picture Growth worries persist Worries about weakening global growth and its potential impact on the US economic recovery roiled markets around the globe this week. Europe continues to be the ...


Keep it rubber side down

This time of year, I always worry about which friends of mine will get caught going off the road in adverse weather conditions. With a little preparation most accidents can be avoided. Having won the...


Big bank predicts rate hike

Photo: Thinkstock.comThe end of record-low rates is nigh, according to one major bank, which has taken a stance and predicted when the Bank of Canada will raise its long-standing overnight rate. &ldq...

_








Member of BC Press Council


22771