Monday, January 26th1.5°C
24736
23613

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

24813


Recent Trending




Today's Market
S&P TSX14777.34-2.01
S&P CDNX672.63-5.55
DJIA17651.34-21.26
Nasdaq4762.363+4.484
S&P 5002053.06+1.24
CDN Dollar0.8027-0.0013
Gold1281.40-11.20
Oil47.03-0.28
Lumber316.00+4.50
Natural Gas2.881-0.105

 
Okanagan Companies
Pacific Safety0.14+0.025
Knighthawk0.010.00
QHR Technologies Inc1.37-0.01
Cantex0.035+0.005
Anavex Life Sciences0.18-0.001
Metalex Ventures0.035-0.005
Russel Metals24.49+0.01
Copper Mountain Mining1.09-0.01
Colorado Resources0.135-0.02
ReliaBrand Inc0.006+0.001
Sunrise Resources Ltd0.055+0.03
Mission Ready Services0.25+0.03

 



23643

FEATURED Property
2104458316-547 Yates Road
1 bedrooms 1 baths
$179,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


How to price: workbook approach

In 2008 Self Counsel Press published my book - Pricing Strategies for Small Business. The book is now available in Europe, India, Russia and the United States. The purpose of the book was to make avai...


Ailing Parents: Tax Issues

If your parent has become ill, there can be several tax issues that come into play depending on the nature of their illness, their age and the role that family members are playing. For example, if you...


What do I pay ICBC for anyway?

If you have had ongoing dealings with ICBC as a result of a car accident than you have likely had the pleasure of dealing with at least two sides of ICBC. Initially the relationship starts off pleasan...

_








Member of BC Press Council


23646