Thursday, November 27th3.9°C
23286
23988

Canadian dollar declines ahead of Bank of Canada rate announcement

TORONTO - The Canadian dollar was lower Monday morning as traders digested a strong read on Chinese manufacturing and looked ahead to key domestic data coming out this week.

The loonie slipped 0.15 of a cent to 92.08 cents US two days before the Bank of Canada delivers its next announcement on interest rates. The key rate will stay unchanged at one per cent, where it's been since September 2010.

Economists will look to see if the central bank continues to flag concerns about low inflation being the No.1 concern since inflation has been heading higher recently.

Canada's annual inflation rate climbed to its highest level in two years, reaching two per cent in April, largely driven by an unusually big jump in energy prices.

Canadian job figures for May come out Friday and economists expect about 21,000 jobs were created after the economy shed 29,000 the previous month.

Statistics Canada will also release the merchandise trade balance for April on Wednesday. Economists expect it to show a $100 million surplus.

Meanwhile, copper prices got a lift from strong Chinese manufacturing data.

The July copper contract was up four cents to US$3.16 a pound after the China Federation of Logistics and Purchasing said that its monthly manufacturing index rose to 50.8 points in May, up from April’s reading of 50.4 and was the highest level this year. Any reading above 50 indicates expansion.

Elsewhere on the commodity markets, July crude in New York was up a dime to US$102.81 a barrel.

July bullion headed 80 cents higher to US$1,246.80 after losing 3.5 per cent last week with markets feeling more comfortable about the Ukraine crisis and more concerned about deflation rather than inflation, particularly in Europe.

It is widely expected that European Central Bank president Mario Draghi will announce measures on Thursday aimed at raising inflation from very low levels and encouraging a lacklustre economic recovery.

It's also a busy week for economic reports in the U.S.

On Monday, traders will take in the latest reading on the health of the American manufacturing sector. Economists expect the Institute for Supply Management's index for May to come in at 55.5, up from 54.9 in April.

Economists also forecast another month of strong job gains in the U.S. They expect the government's non-farm payrolls report coming out Friday will show that the American economy cranked out about 219,000 jobs following a much stronger expected 288,000 gain in April.

The Canadian Press


Read more Business News

23015


Recent Trending




Today's Market
S&P TSX15008.41-30.00
S&P CDNX765.38-5.68
DJIA17827.7512.81
Nasdaq4787.317+29.065
S&P 5002072.83+5.80
CDN Dollar0.8851-0.0038
Gold1193.50-3.10
Oil72.56-1.13
Lumber327.90-1.60
Natural Gas4.295+0.144

 
Okanagan Companies
Pacific Safety0.160.00
Knighthawk0.01-0.005
QHR Technologies Inc1.32-0.02
Cantex0.04-0.005
Anavex Life Sciences0.171-0.004
Metalex Ventures0.03-0.005
Russel Metals31.37-0.13
Copper Mountain Mining2.17+0.01
Colorado Resources0.12-0.01
ReliaBrand Inc0.0134-0.0001
Sunrise Resources Ltd0.045-0.005
Mission Ready Services0.34+0.015

 
24130


24242

FEATURED Property
1580635Lot 5 lakeshore Road
10075784 bedrooms
$2,395,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Second marriage issues

It is not unusual that one or both of the parties planning to marry are approaching marriage for the second time. There are pluses and minuses to this new situation. On the plus side, individuals ente...


The last great Canadian tax shelter

A guide to how flow-through fund limited partnerships can mightily aid your tax planning!The end of the year will raise concerns among many professionals, self-employed persons, business owners and ev...


What I learned in China: Part 2

As per my previous article on my visit to China, we have much to learn about and from their people. It is potentially the largest market on earth with 1.3 billion people in one country but much will d...

_



24207

24160


Member of BC Press Council


22842