Wednesday, April 1st11.9°C
25326
24949

Canadian dollar drops following string of gains amid weak China trade data

The Canadian dollar closed lower Wednesday, losing some ground after a strong rally amid weak Chinese trade data.

The loonie declined 0.48 of a cent to 91.5 cents US, amid data showing that China’s exports fell 6.6 per cent from a year earlier, well below analysts’ expectations of single-digit growth. Imports contracted by 11.3 per cent.

In a speech Thursday, China's Premier Li Keqiang said the foundation for growth is “not strong” and the economy still faces “downward pressure.” But he ruled out additional short-term stimulus.

The Canadian dollar jumped 0.42 of a cent Wednesday as the release of the minutes of the last Federal Reserve meeting eased concerns about the pace of interest rate hikes and pushed the greenback lower.

But the loonie has enjoyed a series of sharp runups, advancing about three per cent to a three-month high just since March 20. Analysts point to a variety of factors, including positive readings on gross domestic product, inflation, labour and trade and a Bank of Canada business outlook survey earlier this week that confirmed that businesses are increasingly optimistic as the impact of a weak Canadian dollar combines with a U.S. recovery to support growth.

Traders are now looking ahead to next week and the Bank of Canada's latest interest rate announcement which will come out on Wednesday.

Sluggish Chinese data helped push the April crude contract on the New York Mercantile Exchange down 20 cents to US$103.40 a barrel.

Copper was up a cent at $3.05 a pound but the metal has already fallen 11 per cent this year due to lower expectations for Chinese economic growth.

Bullion prices headed higher with the June contract up $14.60 to US$1,320.50 an ounce.

The Canadian Press


Read more Business News

25103


Recent Trending




Today's Market
S&P TSX14942.55+40.11
S&P CDNX681.32+1.25
DJIA17698.18-77.94
Nasdaq4880.23-20.66
S&P 5002059.69-8.20
CDN Dollar0.7929+0.0003
Gold1204.20+21.10
Oil49.55+1.95
Lumber278.90+5.90
Natural Gas2.60-0.04

 
Okanagan Companies
Pacific Safety0.12-0.01
Knighthawk0.010.00
QHR Technologies Inc1.55+0.07
Cantex0.03-0.01
Anavex Life Sciences0.23+0.02
Metalex Ventures0.045+0.005
Russel Metals24.83+0.79
Copper Mountain Mining1.19+0.03
Colorado Resources0.11-0.01
ReliaBrand Inc0.0036-0.0024
Sunrise Resources Ltd0.04-0.01
Mission Ready Services0.23-0.02
Decisive Dividend Corporation1.80+0.02

 





FEATURED Property
2250704330 Prestwick lane
$679,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Down payment

If you have less than 20% down payment, mortgage insurance is required through Canada Mortgage & Housing (CMHC), Genworth or Canada Guaranty. Homeowners no longer need the minimum 5% down payment ...


CRA Notice of Assessment

Many Canadians rush to file their taxes on time each year and don’t think about it until the next year. One of the most overlooked notices received from the CRA annually is the annual Notice of ...


Medical confidential?

If ICBC asks your doctor for your information you may wonder: Can ICBC ask my doctor for my medical information? Can ICBC request a medical report from my doctor without my consent? What is ICBC entit...

_








Member of BC Press Council


25732