Wednesday, October 1st10.2°C
22738
23038

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

23057


Recent Trending




Today's Market
S&P TSX14912.44-48.069
S&P CDNX908.51-0.78
DJIA16851.97-190.93
Nasdaq4442.392-50.998
S&P 5001955.95-16.34
CDN Dollar0.8952+0.0022
Gold1218.40+6.80
Oil91.13+1.37
Lumber333.60+0.70
Natural Gas4.139+0.018

 
Okanagan Companies
Pacific Safety0.13-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.25-0.01
Cantex0.065-0.025
Anavex Life Sciences0.19+0.006
Metalex Ventures0.0550.00
Russel Metals34.58+0.01
Copper Mountain Mining2.38-0.04
Colorado Resources0.165+0.015
ReliaBrand Inc0.019-0.001
Sunrise Resources Ltd0.065+0.045
Mission Ready Services0.31-0.01

 



23167

FEATURED Property
1951071106-456 McPhee St
3 bedrooms 3 baths
$349,800
more details
image2image2image2
Click here to feature your property
Please wait... loading


Power-save your way to a down payment

Part 2 of 2 to read Part 1, click here. 5. Dial down your vacations. New York is out. Maybe Buffalo. For West coast, maybe Seattle instead of Hawaii. Use sites like Airbnb (aribnb.ca) to find ch...


A wildly successful manufacturer

Niche food producer “Sweets from the Earth” thrives using innovation, uniqueness and an unwavering focus on quality. A neighbour’s stew turned Ilana Kadonoff off meat at the age of s...


Finding the smart money

Recently I had the privilege of working alongside André Voskuil, a local guru in the world of Alternative Financing. André has quite the reputation in the world of direct investments as ...

_



23545

23545


Member of BC Press Council


23266