Friday, September 4th14.6°C
26775
26758

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




Recent Trending




Today's Market
S&P TSX13418.10-178.31
S&P CDNX553.95+0.20
DJIA16055.98-318.78
Nasdaq4667.34-66.16
S&P 5001914.99-36.14
CDN Dollar0.7548-0.0031
Gold1120.70-3.00
Oil46.51-0.24
Lumber233.00+0.10
Natural Gas2.661-0.064

 
Okanagan Companies
Pacific Safety0.21-0.01
Knighthawk0.010.00
QHR Technologies Inc1.23-0.01
Cantex0.04-0.01
Anavex Life Sciences1.23+0.12
Metalex Ventures0.05-0.00
Russel Metals21.09+0.00
Copper Mountain Mining0.60+0.00
Colorado Resources0.075-0.010
ReliaBrand Inc0.0045+0.0005
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.075-0.005
Decisive Dividend Corp2.62+0.12

 



26480

FEATURED Property
23279803231 Vineyard View
5 bedrooms 4 baths
$1,398,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


The ball and chain

I have been pleasantly surprised of late to speak with business owners who understand the impact of fixed versus variable costs. A fixed cost is one that must be paid each and every month regardless o...


Where does the money go?

Photo: Thinkstock.comOne of the major components of business relationships that involve money are the fees in the investment industry. There is currently a quiet battle being waged between the practit...


Agree to ask questions

Photo: Thinkstock.comThe STORY: I think, said Janet to herself, that I just figured out a solution to my problem of letting the prospect run the meeting.With that thought in mind, she got out of her c...

_








Member of BC Press Council


27373