Saturday, October 25th6.3°C
23711

Loonie dips, Fed chair says too early to tell how weather has depressed economy

TORONTO - The Canadian dollar closed lower Thursday as an important gauge of the country's trade deficit increased less than expected during the fourth quarter.

The currency dipped 0.06 of a cent to 89.8 cents US as Statistics Canada reported that the current account deficit increased $1.2 billion to $16 billion in the fourth quarter.

The agency said the increase was mostly because of a larger deficit on trade in goods. However, the reading was less than the $16.8-billion deficit analysts had expected.

The current account is the sum of the balance of trade — exports of goods and services less imports — net income from abroad and net current transfers.

In the U.S., traders also took in remarks from U.S. Federal Reserve chair Janet Yellen that it's too early to tell how badly adverse winter weather is affecting the American economy.

During a question and answer session before the Senate's banking committee, Yellen noted that "a number of data releases have pointed to softer spending than many analysts had expected."

"Part of that softness may reflect adverse weather conditions, but at this point it is difficult to discern how much,” Yellen said.

Meanwhile, the U.S. Commerce Department said orders for durable goods declined a seasonally adjusted one per cent in January compared with December. Much of last month’s decline was driven by a 20.2 per cent drop in demand for commercial aircraft, a volatile month-to-month category. But a key category that reflects business investment rose a solid 1.7 per cent.

Traders also looked ahead to other key data coming out over the next few days.

The latest economic growth figures for Canada and the U.S. will be released Friday morning.

Beyond that, traders awaited the upcoming interest rate announcement from the Bank of Canada next Wednesday and Canadian and U.S. jobs data being released at the end of next week.

Commodity prices were mixed with the April crude contract in New York off 19 cents to US$102.40 a barrel.

March copper was down one cent at US$3.20 a pound while April gold bullion gained $3.80 to US$1,331.80 an ounce.

The Canadian Press


Read more Business News

23433


Recent Trending




Today's Market
S&P TSX14543.82+56.99
S&P CDNX805.45-3.15
DJIA16805.41127.51
Nasdaq4483.715+30.923
S&P 5001964.58+13.76
CDN Dollar0.8901-0.0003
Gold1231.20+2.10
Oil81.02-0.73
Lumber336.40+6.80
Natural Gas3.631+0.009

 
Okanagan Companies
Pacific Safety0.105-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.07+0.015
Anavex Life Sciences0.194-0.004
Metalex Ventures0.045+0.005
Russel Metals33.39+0.23
Copper Mountain Mining2.03-0.05
Colorado Resources0.145+0.005
ReliaBrand Inc0.012-0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.445+0.035

 





FEATURED Property
944424314 1450 Bertram Street
2 bedrooms 2 baths
$155,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...


We can get on together

I was in LA this week. I witnessed such crazy and unusual circumstances as I strolled along Hollywood Blvd and Sunset Blvd. A far cry from sleepy Peachland in the Okanagan! The strange thing was, I f...


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 ...

_








Member of BC Press Council


22620