Wednesday, October 1st6.1°C
22738

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




Recent Trending




Today's Market
S&P TSX14960.51-16.41
S&P CDNX909.29-3.47
DJIA17042.90-28.32
Nasdaq4493.39-12.462
S&P 5001972.29-5.51
CDN Dollar0.8915-0.0015
Gold1209.40-2.20
Oil90.26+0.50
Lumber333.20+0.30
Natural Gas4.151+0.03

 
Okanagan Companies
Pacific Safety0.13-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.26+0.03
Cantex0.065-0.025
Anavex Life Sciences0.184-0.001
Metalex Ventures0.0550.00
Russel Metals34.57+0.08
Copper Mountain Mining2.42-0.10
Colorado Resources0.165+0.015
ReliaBrand Inc0.019-0.001
Sunrise Resources Ltd0.065+0.045
Mission Ready Services0.32-0.02

 





FEATURED Property
16320204300 Takla Road
3 bedrooms 5 baths
$2,950,000
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 ...

_








Member of BC Press Council


23266